UBS Cuts Estimates and PT on MSC Industrial (MSM); Talk of Moderation, but Not On Growth Spending

June 29, 2012 10:54 AM EDT Send to a Friend
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Price: $85.02 +2.40%

Rating Summary:
    6 Buy, 6 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 1 | Down: 0 | New: 2
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UBS maintains a 'Buy' on MSC Industrial (NYSE: MSM) price target of $75.00 (from $83.00).

Analyst, Robert Barry, said, "MSM's manufacturing end markets have slowed and we expect sales growth to come primarily from pricing, share gains, and M&A in F4Q, F13. We think plans to augment key growth initiatives make sense (e.g. in vending, IT/eCommerce) given large share gain opportunities, which likely grow in a weaker macro. But the degree of margin pressure was a little disappointing vs. W.W. Grainger (NYSE: GWW) and Fastenal (Nasdaq: FAST), which seem to be doing a better job offsetting such investments with productivity."

FY12 EPS estimate cut from $4.11 to $4.06 and FY13 from $4.64 to $4.35.

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 $65.07 yesterday.


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