FBR Capital Reiterates an 'Outperform' on WESCO International (WCC); Added to Top Picks List
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Price: $157.30 --0%
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 1
Rating Summary:
19 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 1
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FBR Capital reiterates an 'Outperform' on WESCO International (NYSE: WCC), raises PT to $75.
FBR analyst says, "We recently had the opportunity to host investor meetings with WESCO President and CEO John Engel and came away with increased conviction in our positive view on WESCO’s ability to execute on its strategic road map for a return to 6% + margins on near-previous peak revenues by 2013. We believe the company’s 2013 financial goals could prove conservative and see upside from (1) recovery in the company’s still depressed late-cycle markets in non-res construction and utility (~40% of revenues), (2) leaner cost structure driving EBIT pull-through in excess of 50% and margins potentially well beyond previous peak, (3) better product mix with 20% of revenues (versus 2% last cycle) from faster-growing, higher-margin datacom markets, (4) increased penetration with global accounts and continued share gains where we note the company’s impressive performance in the weak construction markets last year, and (5) accretive acquisitions, where the highly fragmented distribution markets offer tremendous opportunity for consolidation. We also see opportunity, longer term, from increased global sourcing and private label initiatives, especially in the company’s one-third revenues in general supplies."
For more ratings news on WESCO International click here and for the rating history of WESCO International click here.
Shares of WESCO International closed at $62.50 yesterday.
FBR analyst says, "We recently had the opportunity to host investor meetings with WESCO President and CEO John Engel and came away with increased conviction in our positive view on WESCO’s ability to execute on its strategic road map for a return to 6% + margins on near-previous peak revenues by 2013. We believe the company’s 2013 financial goals could prove conservative and see upside from (1) recovery in the company’s still depressed late-cycle markets in non-res construction and utility (~40% of revenues), (2) leaner cost structure driving EBIT pull-through in excess of 50% and margins potentially well beyond previous peak, (3) better product mix with 20% of revenues (versus 2% last cycle) from faster-growing, higher-margin datacom markets, (4) increased penetration with global accounts and continued share gains where we note the company’s impressive performance in the weak construction markets last year, and (5) accretive acquisitions, where the highly fragmented distribution markets offer tremendous opportunity for consolidation. We also see opportunity, longer term, from increased global sourcing and private label initiatives, especially in the company’s one-third revenues in general supplies."
For more ratings news on WESCO International click here and for the rating history of WESCO International click here.
Shares of WESCO International closed at $62.50 yesterday.
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