Oppenheimer Downgrades WESCO International (WCC) to Perform
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Oppenheimer downgraded WESCO International (NYSE: WCC) from Outperform to Perform.
Analyst Christopher Glynn commented, "We are downgrading shares of WCC to Perform from Outperform with share price nearing our prior $65 PT. WCC guidance rigor has improved, with SG&A controls and improved GM performance aiding visibility to 2017 expectations. However, with a stagnant macro and shares trading at 16x our '17E EPS (~0.9x vs. S&P 500 Industrials; ~0.85x ten-year average), we believe expectations and valuation in balance. GM performance appears stabilized, with flat y-o-y performance in 2Q reflecting broad-based supplier sourcing and inventory management strategies offsetting -50 bps price, and representing improvement from recent trend of decline (19.9% in 2015, vs. 20.6% in 2013). SG&A comparisons appear tougher into 3Q, as aggressive cost controls start to lap."
Shares of WESCO International closed at $62.93 yesterday.
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