Barclays Maintains an 'Overweight' on WW Grainger (GWW); 3Q11 Thoughts and Model

Barclays maintains an 'Overweight' on WW Grainger (NYSE: GWW) price target of $183.00.

Barclays analyst says, "GWW reported a strong 3Q with solid core growth of 8% (including 3% from pricing) and operating leverage ahead of expectations. EPS of $2.51 came in nicely ahead of consensus of $2.33 and BCE of $2.34. Stronger-than-expected margins drove the beat with positive price/cost delta and mix supporting 14.3% EBIT margins, up 150bps y/y and 130bps ahead of BCE. Acquisitions added 2% to growth in the quarter with Fabory closing Aug. 31; management expects Fabory (~$350M in sales with EBIT mid-single digit EBIT margins) to be neutral to 2011 and accretive to 2012." (Raises FY11

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 $166.30 yesterday.

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