Stephens analyst Tommy Moll downgraded Fastenal to Equal Weight from Overweight with an unchanged price target of $60, citing the combination of shares trading just below the firm’s price target, a valuation that is “toward the upper end of its historic range,” and macro conditions that present challenges to near-term earnings growth. Further expansion in the stock’s “well-deserved premium multiple” is unlikely, meaning that a breakout in the stock above $60 would likely require a significant reacceleration of earnings growth, for which the firm does not currently see visibility.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See Insiders’ Hot Stocks on TipRanks >>
Read More on FAST: