UBS Maintains a 'Neutral' on Fastenal (FAST); See 4Q Revenue Momentum Continuing Into 1H12, but Risk/Reward Looks Less Compelling

UBS maintains a 'Neutral' on Fastenal (NASDAQ: FAST) price target raised from $43 to $45.

UBS analyst says, "Our take on 4Q: Strong top line momentum; Vending, margins weaker - 4Q again showed the strength of FAST’s top line growth story, with sales +21.6% y/y. GM held the low end of FAST’s target 51-53% range, but missed our estimate; management flagged work to do on payroll costs. Vending lost momentum, likely on seasonal factors. We find it note worthy each store can’t add one machine per quarter given how compelling the value prop seems, likely evidencing an ongoing go-to-market learning curve at FAST, and aversion to change among customers."

Raises FY12 EPS $0.03 to $1.53 and FY13 by $0.05 to $1.85.

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 $45.74 yesterday.

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