NEW YORK (TheStreet) -- Robert W. Baird downgraded Anixter (AXE - Get Report) to "neutral" from "outperform" and set a $108 price target. The firm cited valuation, as the stock has outperformed the market over the past two years.
The stock was down 1.32% to $103.23 at 9:45 a.m. Monday.
Must Read: Warren Buffett's 25 Favorite Stocks
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.24% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AXE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ANIXTER INTL INC has improved earnings per share by 12.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ANIXTER INTL INC increased its bottom line by earning $6.03 versus $3.65 in the prior year. This year, the market expects an improvement in earnings ($6.46 versus $6.03).
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 2.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ANIXTER INTL INC's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has exceeded that of the Electronic Equipment, Instruments & Components industry average, but is less than that of the S&P 500. The net income increased by 11.5% when compared to the same quarter one year prior, going from $42.50 million to $47.40 million.
- You can view the full analysis from the report here: AXE Ratings Report
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts