Credit Suisse Sees Gross Margin Holding Up for W.W. Grainger

In a report published Monday, Credit Suisse analyst Hamzah Mazari reiterated an Outperform rating and $310.00 price target on

. In the report, Credit Suisse noted, “Although we acknowledge gross margins will not increase at the same rate relative to last cycle, there is not likely to be compression. Our sense is some pricing (~1%) and better execution are likely to offset mix (more larger customers) headwinds which combined with stronger operating leverage as a result of consistent growth initiative spend (~$100mm+/per annum) should drive higher earnings growth. We expect a mid-teens EPS growth going forward.” W.W. Grainger closed on Thursday at $255.58.