Loop Capital sees ‘reasons for optimism’ for MSC Industrial ahead of Q2 results

Loop Capital analyst Chris Dankert keeps a Buy rating and $124 price target on MSC Industrial ahead of its Q2 results tomorrow. Investor sentiment remains generally negative around the stock, but the firm sees reasons for optimism into the back-half of the fiscal year, particularly as its USCTI cutting tool order data actually implies incremental upside to Q2 sales vs. consensus, the analyst tells investors in a research note. A reset around sales expectations and ongoing execution at the gross margin line could be enough to help the shares rally into the second half of FY24, the firm added.