Fastenal (FAST) Stock Down, BMO Capital Lowers Price Target
NEW YORK (TheStreet) -- Shares of Fastenal (FAST) - Get Report are down by 0.50% to $43.57 in early-morning trading on Wednesday, as the company's price target was cut to $47 from $49 at BMO Capital earlier today.
The reduction is a result of the company's fiscal 2016 second quarter results, announced Tuesday, according to the analyst note. Estimates dropped to 45 cents versus 48 cents a year ago, which is a decline of 5% YoY and 6% below Wall Street expectations.
Fast's Vending, on-site and other growth initiatives could help spur sales in 2017, when industrial demand may have picked up, BMO said.
"But presently, the industrial economy and the MRO trade are difficult," the firm wrote. "MSC Industrial Direct (MSM) earnings report last week and this report support our view the operating environment has weakened in the last two months."
The Winona, MN-based company is involved in the business of wholesale and retail distribution of industrial and construction supplies.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate FASTENAL CO as a Buy with a ratings score of B+. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: FAST
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