In a report released on October 31, Christopher Snyder from Morgan Stanley maintained a Hold rating on WW Grainger, with a price target of $1,150.00.
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Christopher Snyder has given his Hold rating due to a combination of factors surrounding WW Grainger’s recent performance and future outlook. The company posted a strong Q3 earnings per share, surpassing both Morgan Stanley estimates and consensus figures, primarily driven by a significant gross margin beat. This positive result has led to an upward revision in the company’s full-year gross margin guidance, indicating confidence in a stable exit rate.
Despite these positive indicators, the implied guidance for Q4 earnings per share suggests potential downside at the midpoint, which tempers the overall enthusiasm. Additionally, while the gross margin guidance raise is a positive surprise, the company’s exposure to potential government shutdown risks and the largely stable industrial macro environment are factors that contribute to a cautious outlook. Therefore, while there is confidence in the 2026 outlook providing valuation support, the current market conditions and potential headwinds justify a Hold rating.
In another report released yesterday, RBC Capital also reiterated a Hold rating on the stock with a $1,050.00 price target.
GWW’s price has also changed slightly for the past six months – from $1024.310 to $979.000, which is a -4.42% drop .