UPDATE: Wunderlich Securities Reiterates Buy Rating, Raises PT on MSC Industrial Direct Co.
In a report published Monday, Wunderlich Securities reiterated its Buy rating on MSC Industrial Direct Co. (NYSE: MSM), and raised its price target from $78.00 to $94.00.
Wunderlich Securities noted, “MSC (MSM) reports Q113 results January 10. We project in-line EPS and sales for Q1. With regard to Q2 guidance, we are slightly more optimistic on EPS (WSI: $1.03, Street: $1.02) driven by higher operating margins, but cautious toward the revenue outlook (WSI: 5.0% growth, consensus: 6.3%). We anticipate storm-normalized October-November month growth will be 6.5%-7.0%, but Q2 will be hurt by unfavorable holiday timing, the January ATS deal anniversary and very difficult macro industrial comparisons. We believe Street estimates may prove overly aggressive for 2H13, as macro headwinds still remain. For 2014, however, we believe operating margins will exceed estimates and higher pricing/macro demand could produce further EPS upside.”
MSC Industrial Direct Co. closed on Friday at $78.29.
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