WESCO (NYSE:WCC) hasn't exactly distinguished itself in the six months since I last wrote about the company. Admittedly, not many distributors have done well over that time, as HD Supply (NASDAQ:HDS), Grainger (NYSE:GWW), Fastenal (NASDAQ:FAST)
and several others are in the red, but it is nevertheless frustrating
that WESCO has paired a frustratingly slow recovery in key markets with
shortfalls in its reported margins.
Pushing out some of the
expected improvements in financial performance does take some upside out
of my price target, but with a fair value in the mid-$80s, I still
believe WESCO is a worthwhile name to consider as a play on a
non-residential construction recovery. Management needs to show that it
can deliver real results from its "One WESCO" strategy, but I do see a
path for the company to generate better margins and asset turnover as it
continues to integrate acquisitions and leverage end-market recoveries.
Continue reading here:
WESCO Still Waiting
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