Stephens starts Distribution Solutions at Overweight, sees compelling EPS growth

Stephens analyst Tommy Moll initiated coverage of Distribution Solutions with an Overweight rating and $38 price target. The company offers competitive moats around multiple value-added service delivery models along with compounding growth that is serving loyal customers in large markets, the analyst tells investors in a research note. Stephens adds that Distribution Solutions’ execution is aided by synergistic relationships among parent/ operating companies, with the company also offering “compelling” EPS growth that is driven by mutually-reinforcing organic and inorganic strategies.