UPDATE: Wunderlich Securities Upgrades W.W. Grainger to Buy, Raises PT

In a report published Monday, Wunderlich Securities upgraded its rating on W.W. Grainger

from Hold to Buy, and raised its price target from $208.00 to $255.00. Wunderlich Securities noted, “After thoroughly digesting Grainger's (GWW) analyst day and coming to differentiated conclusions regarding the outlook for certain line items in 2013, we believe current price levels present an attractive entry point for investors. While we don't believe Grainger's 2013 guidance contains the pure top-line conservatism baked into its outlook entering 2010, we feel Grainger has not previously addressed each of its three primary revenue and margin lines with this level of caution. It is this analysis that places our updated 2013-2014 estimates meaningfully above consensus. Further, we believe valuation provides room for expansion and longer-term growth rates appear more sustainable with 2013 inflation proving Grainger's commitment to pricing.” W.W. Grainger closed on Friday at $204.63.