- Oops!Something went wrong.Please try again later.
The analyst says that Grainger's outsized 70c/10% 2Q22 operating beat and guidance boost 6% above consensus signals that industrial short-cycle MRO demand remains solid.
There were no telltale signs of an industrial slowdown in this "canary in the coalmine" bellwether, and July was equally as strong, Dray adds.
Dray mentions that MRO share gains were also impressive, as Grainger outgrew peers by 1,000 bps.
Stephens analyst Tommy Moll raised the price target on GWW to $600 (an upside of 9.4%) from $565 while maintaining the Equal-Weight rating on the shares.
The analyst says the segment-level updates were positive, with High-Touch gross margins down slightly Q/Q but still in the target ~40% range.
Moll states that GWW signaled strong demand trends through July, which we note is better than what peer Fastenal Co (NASDAQ: FAST) reported earlier this earnings season.
GWW's execution around the supply chain continued to drive share gains in 2Q22, and focus on go-to-market strategy/strategic initiatives leaves upside untapped, the analyst notes.
Moll expects shares of GWW to trade range-bound medium- to long-term given the fact that shares sit at all-time highs given the macro backdrop.
Baird analyst David Manthey raised the price target for GWW to $600 (an upside of 9.4%) from $505 while maintaining the Outperform rating on the shares.
Morgan Stanley analyst Joshua Pokrzywinski raised the price target for GWW to $448 (a downside of 18.3%) from $421 while maintaining the Underweight rating on the shares.
Price Action: GWW shares closed higher by 1.12% at $549.60 on Monday.
Latest Ratings for GWW
See more from Benzinga
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.