Atlantic Equities - WW Grainger (GWW) Progress Being Made but Valuation Fair

Report

Atlantic Equities

Richard Radbourne

Progress Being Made but Valuation Fair

Volume growth has responded well to US pricing actions and a robust industrial economy bodes well for FY18, while restructuring actions support margin improvement through FY19. However, margin trajectory thereafter remains a key question and is likely to cap the valuation. Hence, we remain Neutral.

08/03/2018 29 EN

Underlying

WW Grainger

See profile

Provider

Atlantic Equities

Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.

Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.

See profile

Analysts

Richard Radbourne

Other Reports on these Companies

Atlantic Equities

Valuation Full - Reiterate Neutral

Q218 delivered meaningful EPS upside and GWW is executing well, while raised FY18 guidance may still prove too conservative. However, we view the current valuation as discounting the latter and at risk as the US pricing reset / restructuring actions are completed.

July 19, 2018 July 19, 2018 9 EN

Atlantic Equities

Good Start to Q118 / Valuation Full

GWW shares rose 5% yesterday which fairly reflects the 9% mid-point increase to FY18 EPS guidance (+$1.35-1.15 â†’ $14.30-15.30). We have raised our FY18/19 EPS estimates by $1.20/$0.95. However, at ~17.5x (113% S&P500-relative) our revised FY19E EPS estimate we view the valuation as full.

April 20, 2018 April 20, 2018 7 EN

Model update

This report contains forecasts updated for reported Q218 results. Neither our financial nor PSU estimates are materially changed and we remain Overweight with a 12m PT of $365.

October 1, 2018 October 1, 2018 5 EN

Kunaal Malde ... (+2)

Kunaal Malde
CFA

V/MA: strong core, adjacencies more competitive

V/MA remain core long term holdings with secular cash to card tailwinds driving strong growth long term, supported by developments such as contactless. Valuation remains reasonable, although newer growth areas such as B2B face greater competition. We remain Overweight V/MA, raise our price targets to $173 and $250 respectively and currently favour V which trades on a PE of 28x, three turns lower than MA.

October 1, 2018 October 1, 2018 17 EN

John Heagerty ... (+3)

John Heagerty
Nadja Heini
CFA

Banks: Trading update and 3Q18 preview

Market volatility has moderated significantly since the beginning of the year, ceasing to be a tailwind for the banks' trading revenues in 3Q18. Despite the strong IB pipelines (announced M&A is up 40% YTD), fee pools have been affected by timing issues and are down 15-20% across the industry for the current quarter. Medium term, the outlook remains positive thanks to improving GDP growth, benign credit conditions, rising interest rates and a deregulatory focus. We have lowered our 3Q18 EPS estimates by 3% on average. Our longer term forecasts decline only modestly by 1%. C remains our t...

September 27, 2018 September 27, 2018 14 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Progress Being Made but Valuation Fair

Valuation Full - Reiterate Neutral

Good Start to Q118 / Valuation Full

Model update

V/MA: strong core, adjacencies more competitive

Banks: Trading update and 3Q18 preview

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe