UBS maintained a Neutral rating on WW Grainger (NYSE: GWW), and cut the price target to $225.00 (from $235.00), following the company's 2Q earnings report. GWW reported an EPS of $2.98, missing the consensus of $3.17. The miss was driven mainly by U.S. and Canada at segment level, and a higher tax rate.

Analyst Shannon O'Callaghan commented, "Grainger reported 2Q16 EPS of $2.98 vs. our $3.18 estimate (consensus of $3.17) driven mainly by the U.S. (-$0.13) and Canada (-$0.12) at segment level, and a higher tax rate (-$0.12). Organic sales declined 2% (vs. our +1.5%) with volume and price each down 1%. Price of -1% was an improvement from the -3% in 1Q, and gross margins are expected to see some benefit from the recent May 1 price increases, offset by negative volume deleverage. Organic daily sales slowed from flat in April to -4% in June (July sales tracking in line with June). Gross margins declined 200bps driven mainly by negative mix and price/cost, while operating margins of 12.6% declined 160bps y/y."

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Shares of WW Grainger closed at $217.78 yesterday.