Deutsche Bank Downgrades MSC Industrial (MSM) to Sell
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Rating Summary:
8 Buy, 16 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Deutsche Bank downgraded MSC Industrial (NYSE: MSM) from Hold to Sell with a price target of $73.00 (from $92.00).
Analyst John G. Inch said, "We are downgrading MSM to Sell from Hold. We are cutting our FY15 EPS forecast estimates from $4.50 to $4.20 while our FY16 EPS forecast estimates decline from $5.25 to $4.88. In turn, we are lowering our MSM price target to $73 from $92, which we derive by applying a mid-teens P/E valuation multiple to our $4.88 EPS estimate in FY16."
"Yesterday, MSC reported disappointing F4Q14 results. Additionally, the company provided a year-ahead operating margin framework that suggested that if the current moderate growth/weak pricing environment continues, OP margins would be expected to be, on average, 1 point below the 14.4% realized this year. Looking ahead, we believe distributor customer mix and industry pricing pressures are likely to prevail throughout the coming year, and possibly become more acute," he added
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 $84.27 yesterday.
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