UPDATE - UBS Initiates Coverage on MSC Industrial (MSM) with a Buy; Quietly Grinding Out Growth

UPDATE - UBS initiates coverage on MSC Industrial (NYSE: MSM) with a Buy. PT $80.00.

UBS analyst said, "See attractive near- and longer-term top line growth prospects: Relevant manufacturing metrics (ISM, IP) suggest strong near-term performance, especially durables orders, which correlate well with much of MSM’s sales and have been accelerating (Sep./ Oct. +7.4%/ +9.2% y/y). Longer term, we see sizable ongoing share gain opportunities as well-resourced MSM expands its sales force, adds new products, enhances its vending initiative, and pursues accretive M&A."

"Unlike its larger public comps – WW Grainger (NYSE: GWW) and Fastenal (Nasdaq: FAST) – MSM shares are not trading at the high end of historical valuation ranges, despite what we see as similar share gain opportunities, growth prospects, and defensive attributes at MSC. We believe GWW/FAST have better articulated growth strategies, but think MSC’s results will also evidence robust growth investment traction and drive multiples/estimates up."

To see more ratings on MSM, Click Here

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