Oppenheimer Downgrades WESCO International (WCC) to Perform

September 7, 2016 6:25 AM EDT
Get Alerts WCC Hot Sheet
Price: $54.95 -8.49%

Rating Summary:
    10 Buy, 17 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 28 | New: 8
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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."

For an analyst ratings summary and ratings history on WESCO International click here. For more ratings news on WESCO International click here.

Shares of WESCO International closed at $62.93 yesterday.

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