RBC Capital Reiterates Outperform Rating on Graco Inc. (GGG)

RBC Capital analyst Deane Dray reiterated an Outperform rating and $103.00 price target on Graco Inc. (NYSE: GGG).

The analyst comments "We hosted high-demand June 25-26 Atlanta and Charlotte investor meetings with Outperform-rated Graco’s EVP/Corporate Controller. Commentary about the tone of business was limited to previously disclosed April trends. Instead, investors were eager to discuss the key ingredients in Graco’s “secret sauce” where it generates near-sector-best profitability and ROIC from a seemingly cyclical business in spray paint finishing/specialty pumps/meters. The answer lies in Graco’s ability to leverage market segmentation, NPI, pricing power, 40% recurring revenues, and manufacturing automation across its low-volume/high-mix businesses. This stealth high-quality compounder is net cash with relative valuation attractively below its three-year relative P/E support level."

For an analyst ratings summary and ratings history on Graco Inc. click here. For more ratings news on Graco Inc. click here.

Shares of Graco Inc. closed at $78.95 yesterday.

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