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.
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Separately, TheStreet Ratings team rates ANIXTER INTL INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANIXTER INTL INC (AXE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.