DA Davidson analyst Chris Dankert reiterated a Neutral rating and $46.00 price target on Fastenal (NASDAQ: FAST).

The analyst commented, "Our checks provide a modestly positive read for FAST as underlying demand continues to tick higher. We continue to forecast Fastenal ADS growth of +12.3% y/y for June, slightly below typical seasonality due to the impact of selling days, but still +22% on a 2-year stack basis (vs. T3M average of 22%). However, we see current consensus earnings forecasts as slightly too high due to near-term margin challenges. Specifically, due to lingering price/ cost headwinds, company commentary suggests CY2Q gross margin will follow typical seasonality (-20bp q/q or tacit guidance for GM of 44.4%; -90bp y/y) despite the impact of incremental pricing gains. Meanwhile, current consensus calls for CY2Q gross margin of 44.6%, flat sequentially. Furthermore, given the need to invest for growth and the impact of rising fuel costs, we believe current consensus is under-appreciating the upward pressure on SG&A. We anticipate 2Q26 SG&A growth of +9.5% y/y (see accompanying table) led by fuel costs (+47% y/y) and modestly higher labor cost expectations (+3% FTE). As a result, we are forecasting 2Q26 EBIT margin of 21.0%, flat y/y and vs. 21.2% consensus. FAST is a high-quality name, and we would be buyers on any meaningful retrenchment."

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Shares of Fastenal closed at $48.31 yesterday.