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UBS Maintains a 'Buy' on MSC Industrial (MSM); Adjusting Numbers as Recent Manufacturing Data Warrants Some Caution

June 27, 2012 12:03 PM EDT Send to a Friend
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Price: $89.85 +0.30%

Rating Summary:
    6 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 20 | Down: 10 | New: 7
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UBS maintains a 'Buy' on MSC Industrial (NYSE: MSM) price target of $83.00 (from $92.00).

Analyst, Robert Barry, said, "Our F’12E EPS rises $0.01 (from $4.10 to $4.11) after factoring a softer macro and refining our estimates for the impact of an extra week in F4Q (“4-4-5 calendar accounting”), which adds ~8pts to F4Q growth. Unlike at Fastenal (Nasdaq: FAST), we think recent MSM sales growth was aided by easing y/y comps and less impact from slowing non-U.S. ops, while sales guidance framed Street expectations. But our F’13 volume growth estimate falls on a weaker U.S. mfg outlook and the absence of that extra week, taking $0.11 off EPS (from $4.75 to $4.64)."

Overall, Barry thinks the stock offers an attractive opportunity, liking the company's valuation, growth and defensive aspects.

For an analyst ratings summary and ratings history on MSC Industrial click here. For more ratings news on MSC Industrial click here.

Shares of MSC Industrial closed at $64.22 yesterday.




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