UPDATE: Wunderlich Securities Upgrades WESCO International to Buy, Raises PT on Reduced Downside

In a report published Monday, Wunderlich Securities analyst Brent D. Rakers upgraded the rating on WESCO International WCC from Hold to Buy, and raised the price target from $79.00 to $94.00. In the report, Wunderlich Securities noted, “We are raising our rating on Wesco (WCC) to Buy. We believe estimates offer reduced downside, as negative factors are priced into the stock/Street estimates, including: unfavorable currency, copper price deflation, EECOL under-performance and a more realistic gross margin path. While we harbor slight concerns about Q3 sales guidance given July sales growth, we believe margin and tax rate assumptions are conservative enough to offset this risk. Wesco is attractive for a cyclical upturn given financial leverage, price inflation exposure, potential for favorable valuation multiple shift, aggressive M&A approach, deeper customer commodities sensitivity and a declining tax rate on commodities strength. A Wesco recommendation was about establishing realistic expectations; we are there now.” WESCO International closed on Friday at $74.47.