BMO Capital Cuts Price Target on Grainger (GWW) to $270 Following 2Q EPS Miss

BMO Capital maintained an Outperform rating on WW Grainger (NYSE: GWW), and cut the price target to $270.00 (from $300.00), following the company's 2Q earnings report. GWW reported adjusted EPS of $2.89, 9% below expectations. Total and organic sales were in-line at +2% and -2%.

Analyst Scott Graham commented, "2Q16 adj EPS were -11% and below views. Org sales were -2% but in line. Higher operating, interest, and tax expenses drove the shortfall vs. our model. We are reducing our 2H16E and 2017E EPS by 4% apiece. There was a step-down in the MRO markets in 2Q and our prior estimate reductions were not enough. But we expect the markets to improve somewhat by year-end and expect better management of operating expenses."

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 $217.78 yesterday.

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