Graco Downgraded by Oppenheimer to Market Perform (GGG)
Graco (NYSE:GGG) was downgraded by equities researchers at Oppenheimer from an “outperform” rating to a “market perform” rating in a research report issued on Monday, TheFlyOnTheWall.com reports. They currently have a $76.00 price target on the stock. Oppenheimer’s target price points to a potential downside of 1.71% from the company’s current price.
The analysts wrote, “GGG has been a favored name in our coverage since we upgraded on 8/10/12 (at $48.73), and we expect operational execution and US res/non-res construction volume leverage to continue to support results. That said, we are downgrading shares to Perform from Outperform given: 1) earnings upside opportunities appear constrained in the intermediate term, particularly as GGG sells LF (timing remains uncertain) and is charged with redeploying related capital; 2) Industrial segment margin potential above 35% is a stretch for even a best-in-class company; 3) Contractor segment sales comparisons become more challenging going forward; and 4) valuation (23x forward P/E, 13x (fwd) EV/EBITDA) provides little room for upside, in our view, after material outperformance since August 2012 (+59% vs. S&P +25%).”
Shares of Graco (NYSE:GGG) opened at 77.32 on Monday. Graco has a 1-year low of $44.91 and a 1-year high of $74.70. The stock has a 50-day moving average of $71.48 and a 200-day moving average of $63.7. The company has a market cap of $4.735 billion and a P/E ratio of 23.14.
Graco (NYSE:GGG) last posted its quarterly earnings results on Thursday, October 24th. The company reported $0.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.83 by $0.06. The company had revenue of $277.04 million for the quarter, compared to the consensus estimate of $272.80 million. During the same quarter in the previous year, the company posted $0.60 earnings per share. The company’s revenue for the quarter was up 8.0% on a year-over-year basis. On average, analysts predict that Graco will post $3.36 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Wednesday, November 6th. Stockholders of record on Monday, October 21st will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 1.29%. The ex-dividend date is Thursday, October 17th.
Separately, analysts at BMO Capital Markets raised their price target on shares of Graco from $66.00 to $82.00 in a research note to investors on Friday. They now have a “market perform” rating on the stock. Five analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus price target of $72.00.
Graco Inc (NYSE:GGG) design, manufacture and sell equipment that pumps, meters, mixes, dispenses and sprays a variety of fluids and semi-solids.
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