I reported yesterday that Kaydon (KDN), the maker of specialty ball bearings for the wind market reported so so results but that much of the negativity had most likely already been built in.  Apparently, Deutsche Bank feels the same way and upgraded the stock from Hold to Buy this morning, saying: 

“Cyclical risk appears adequately discounted. Plenty of free options. While we dislike the inherent cyclicality of Bearings markets as we enter what appears to be a fairly significant recession, we can no longer ignore KDN’s super-strong balance sheet. Cash supports 1/3 of current market cap and the lack of financial leverage, along with high operating margins, is an important offset to revenue downside. On a cash-stripped basis, the stock trades at discounted multiples of 8x EPS and 4x EBITDA. At current levels, investors are getting the potential for secular wind growth and massive buy-back accretion for free.”

Shares rocketed higher nearly 17% today and the area around 25 is shaping up as a decent support level.