Fastenal price target lowered to $53 from $54 at Loop Capital

Loop Capital analyst Chris Dankert lowered the firm’s price target on Fastenal to $53 from $54 and keeps a Hold rating on the shares. The analyst contends that despite the impact of structural gross margin headwinds, the company should be able to roughly maintain EBIT margin by leveraging lower SG&A costs of its Onsite business in 2023. Dankert also believes that Fastenal will outgrow its markets regardless of the cycle and maintain or grow earnings, adding that he would look to get more constructive on any reacceleration in demand growth or retrenchment in the shares.