Jefferies Raises Price Target on MSC Industrial (MSM) After Q1 Earnings Top Expectations by 26%
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Price: $119.81 +1.79%
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 20 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies is reaffirming its Hold rating on shares of MSC Industrial (NYSE: MSM) and is raising its price target on them from $68 to $76.
The company reported strong Q1 results with earnings topping expectations by 26% at $0.95 per share, while core sales beat estimates by 13%.
Management at MSM briefly commented on its goal of $10 billion in sales, but did not discuss any timeline. The team believes broadening its metalworking business, entering adjacent MRO categories, and new markets markets will help drive this growth. The firm is encouraged by the company's plan.
An analyst at Jefferies comments, "F1Q12 results were strong. F2Q sales and EPS guides were favorable, but the tenets of guidance imply far less op margin expansion than in prior quarters. We like the aggressiveness of the LT growth plan but cannot dismiss its risks, some of which already may be manifesting in a ramp in spending in F2Q12. We have increased our forecasts owing to the F1Q12 result and the improvement in the US industrial economy."
For an analyst ratings summary and ratings history on MSC Industrial click here. For more ratings news on MSC Industrial click here.
Shares of MSC Industrial closed at $72.26 yesterday.
The company reported strong Q1 results with earnings topping expectations by 26% at $0.95 per share, while core sales beat estimates by 13%.
Management at MSM briefly commented on its goal of $10 billion in sales, but did not discuss any timeline. The team believes broadening its metalworking business, entering adjacent MRO categories, and new markets markets will help drive this growth. The firm is encouraged by the company's plan.
An analyst at Jefferies comments, "F1Q12 results were strong. F2Q sales and EPS guides were favorable, but the tenets of guidance imply far less op margin expansion than in prior quarters. We like the aggressiveness of the LT growth plan but cannot dismiss its risks, some of which already may be manifesting in a ramp in spending in F2Q12. We have increased our forecasts owing to the F1Q12 result and the improvement in the US industrial economy."
For an analyst ratings summary and ratings history on MSC Industrial click here. For more ratings news on MSC Industrial click here.
Shares of MSC Industrial closed at $72.26 yesterday.
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