Barclays Maintains an 'Overweight' on WW Grainger (GWW); Investor Day and 2012 Outlook
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Price: $1,322.64 +0.10%
Rating Summary:
9 Buy, 23 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 23 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Overweight' on WW Grainger (NYSE: GWW) price target of $195.00.
Barclays analyst says, "GWW hosted an upbeat analyst day, highlighting what we view as a tipping point for national scale distributors. GWW is gaining considerable market share, driven by customers moving away from "Mom & Pops" suffering from difficulties obtaining financing and an inability to compete with e-commerce channels. This trend appears to have legs and is accelerating-the company believes share gains will add 400-500bps of core volume growth in 2012, up from 200-300bps in 2011. Large distributors in the US make up only around 15-20% of the total MRO market and we see reason to believe this share will increase substantially for distributors with scale, driving above-market growth for probably 10+ years."
"Longer term, GWW raised its op margin target range to 15-17% from 14-16% previously. We are tweaking our 4Q11 EPS estimate to $2.04 from $1.99, reflecting better than expected volumes in October; and out 2012E EPS goes to $10.25 from $10.15, primarily on lower tax rate."
For an analyst ratings summary and ratings history on WW Grainger click here. For more ratings news on WW Grainger click here.
Shares of WW Grainger closed at $176.84 yesterday.
Barclays analyst says, "GWW hosted an upbeat analyst day, highlighting what we view as a tipping point for national scale distributors. GWW is gaining considerable market share, driven by customers moving away from "Mom & Pops" suffering from difficulties obtaining financing and an inability to compete with e-commerce channels. This trend appears to have legs and is accelerating-the company believes share gains will add 400-500bps of core volume growth in 2012, up from 200-300bps in 2011. Large distributors in the US make up only around 15-20% of the total MRO market and we see reason to believe this share will increase substantially for distributors with scale, driving above-market growth for probably 10+ years."
"Longer term, GWW raised its op margin target range to 15-17% from 14-16% previously. We are tweaking our 4Q11 EPS estimate to $2.04 from $1.99, reflecting better than expected volumes in October; and out 2012E EPS goes to $10.25 from $10.15, primarily on lower tax rate."
For an analyst ratings summary and ratings history on WW Grainger click here. For more ratings news on WW Grainger click here.
Shares of WW Grainger closed at $176.84 yesterday.
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