HARTFORD, Conn. (AP) -- Shares of Ladish Co. Inc. rose sharply Monday as an analyst upgraded the aerospace supplier based on improving markets.

Analyst Patrick J. McCarthy of FBR Capital Markets upgraded the Cudahy, Wis., company to "Outperform" from "Market Perform."

"Ladish Co. Inc.'s end markets appear to be bottoming out, but there are still strong headwinds that the company needs to contend with," he said in a client note.

Due to improving markets and the potential for strong margin improvement when volume picks up, the stock should trade at its book value, McCarthy said.

"In addition, we think that a significant write-down to goodwill is unlikely and that investors, after looking at these book value scenarios, will start to pay for the stock's attractive risk-to-reward profile," he said.

McCarthy kept his price target at $14.

Shares rose $1.21, or nearly 10 percent, to $13.66 in afternoon trading.