Fastenal initiated with a Buy at Stifel

Stifel analyst Michael Hoffman initiated coverage of Fastenal with a Buy rating and $61 price target. The firm’s thesis centers on Fastenal sustaining a multi-year free cash flow compound annual growth rate of 12%, telling investors that the "building blocks" of that view begin with the firm’s forecast for topline growth of 8%-12% and the view that operating leverage should drive at least 100 basis points of better operating income growth and should support at least another 100 basis points of free cash flow growth. The company’s digital platform, coupled with high touch service and fulfillment support, are a "competitive advantage to sustainably gain share across the three largest product categories," the firm contends.