UBS Downgrades Fastenal (FAST) to Neutral; Remain Bullish on Operations, But Checking Valuation After Recent Run

UBS downgraded Fastenal (NASDAQ: FAST) from Buy to Neutral, price target raised from $40 to $43.

UBS analyst says, "After strong share price performance (+42% YTD) we think risk/reward looks less compelling. We’re raising our estimates to reflect stronger monthly sales, but on our new 2012 EPS of $1.50 (from $1.47) a 30x P/E multiple – the high end of the historic range – implies $45 or only 5% upside. We also think it’s prudent to factor a 2012 recession case but after doing so, even vs. our new, higher base case, we feel risk/reward seems more consistent with a Neutral rating."

For an analyst ratings summary and ratings history on Fastenal click here. For more ratings news on Fastenal click here.

Shares of Fastenal closed at $42.53 yesterday.

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