NEW YORK (TheStreet) -- Shares of WESCO International Inc. (WCC) are up 2.1% this morning to $89.39 after UBS (UBS) upgraded the company to "buy" from "neutral," and raised its price target to $100. from $84.
The company is aprovider of electrical, industrial, and communications maintenance, repair and operating and original equipment manufacturers products, construction materials, and advanced supply chain management and logistic services.
"Organic growth likely to reaccelerate as end markets begin to recover in 2014," the firm said in a note. "We expect WCC to deliver 5% organic growth in 2014 (near the high-end of the guidance range), following flat core growth in 2013, and anticipate further improvement in 2015 (+7.5%)."
Also, UBS said, "We expect M&A to supplement core growth as leverage moves lower WCC takes a disciplined approach to M&A, generally targeting assets that are more profitable than WCC, have a risk-adjusted return greater than WCC's WACC, are accretive in year one, and are a good strategic fit (supplement WCC's position in key product categories, end markets, etc.)."
TheStreet Ratings team rates WESCO INTL INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate WESCO INTL INC (WCC) 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 revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."