W W Grainger Price Target Raised By Multiple Analysts Post Q2 Results

  • RBC Capital analyst Deane Dray raised the price target on W W Grainger Inc GWW to $422 (a downside of 23.06%) from $399 while maintaining the Underperform rating on the shares.
  • The analyst says that Grainger's outsized 70c/10% 2Q22 operating beat and guidance boost 6% above consensus signals that industrial short-cycle MRO demand remains solid.
  • There were no telltale signs of an industrial slowdown in this "canary in the coalmine" bellwether, and July was equally as strong, Dray adds.
  • Dray mentions that MRO share gains were also impressive, as Grainger outgrew peers by 1,000 bps. 
  • Related: W W Grainger Shares Soar On Solid Q2, Raised FY22 Guidance
  • Stephens analyst Tommy Moll raised the price target on GWW to $600 (an upside of 9.4%) from $565 while maintaining the Equal-Weight rating on the shares.
  • The analyst says the segment-level updates were positive, with High-Touch gross margins down slightly Q/Q but still in the target ~40% range.
  • Moll states that GWW signaled strong demand trends through July, which we note is better than what peer Fastenal Co FAST reported earlier this earnings season.
  • RelatedFastenal Shares Slide After Q2 Results, Clocks 18% Sales Growth
  • GWW's execution around the supply chain continued to drive share gains in 2Q22, and focus on go-to-market strategy/strategic initiatives leaves upside untapped, the analyst notes.
  • Moll expects shares of GWW to trade range-bound medium- to long-term given the fact that shares sit at all-time highs given the macro backdrop.
  • Baird analyst David Manthey raised the price target for GWW to $600 (an upside of 9.4%) from $505 while maintaining the Outperform rating on the shares.
  • Morgan Stanley analyst Joshua Pokrzywinski raised the price target for GWW to $448 (a downside of 18.3%) from $421 while maintaining the Underweight rating on the shares.
  • Price Action: GWW shares closed higher by 1.12% at $549.60 on Monday.
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