Credit Suisse Reiterates Underperform, Lowers Price Target On Anixter International On Mixed Factors

In a report published Wednesday, Credit Suisse analyst Flavio S. Campos reiterated an Underperform rating on Anixter International (NYSE: AXE), but lowered the price target from $83.00 to $81.00.In the report, Credit Suisse noted, "AXE reported 4Q adj. EPS of $1.39, missing our estimate of $1.54 and consensus of $1.59 (Adj. EPS adds back $0.16 of acquisition and tax-related items). Organic growth came in at -2.1% vs. our 1.0% estimate (Days-adj. org. growth of 4.3%). Gross margin came in at 22.4% vs. our 22.6% estimate due to product mix shifts towards the lower margin security business, higher OEM sales in W&C, and lower copper prices. SG&A (adj. for acquisition-related expenses) were 16.9% of sales, as estimated, with the miss on op. margins caused by gross margin pressures. While the tax rate came in higher than expected, at 37% vs. our 35% est., non-operating items only accounted for 4 cents of the miss to our estimates."Anixter International closed on Tuesday at $76.03.