UBS Maintains a 'Neutral' on WW Grainger (GWW); Raising Estimates on Better Margin Outlook

UBS maintains a 'Neutral' on WW Grainger (NYSE: GWW), PT increased from $156 to $167.

UBS analyst says, "Q2 results were in line with our forecasts for revenue growth and continue to evidence the benefits of growth investments and a strong US industrial economy. Where performance was better than expected was on margins, with upside from the product cost inflation/price dynamic larger than we expected. We think GWW is seeing limited cost inflation, deferring some costs and raising price, benefiting gross margin. We see the dynamic continuing in 2012, albeit to a lesser degree." (UBS raises FY11 EPS estimates from $8.55 to $8.70 and FY12 from $9.55 to $9.80)

For more ratings news on WW Grainger click here and for the rating history of WW Grainger click here.

Shares of WW Grainger closed at $156.24 yesterday.

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