UPDATE: Wunderlich Securities Initiates MSC Industrial Direct with Buy, $82 PT on Attractive Valuation
Wunderlich Securities initiates its coverage on MSC Industrial Direct (NYSE: MSM) with a Buy rating and a price target of $82.
Wunderlich Securities comments, "We believe MSC is one of the most attractively valued plays among higher growth industrial distribution names. While near-term gross margins have been muddied by three recent acquisitions, management has a solid precedent for margin success established through the 2006 J&L purchase. Further, the company's vending program has provided customer wins, but at the expense of margins. We view these as presenting only short-term headwinds. Longer term, we believe MSC remains underpenetrated in the U.S. and a limited international footprint provides opportunity abroad. Balance sheet strength also provides significant M&A possibilities."
MSM closed at $72.26 on Thursday.
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