WW Grainger (GWW) PT Raised to $350 at Oppenheimer

Oppenheimer raised its price target on WW Grainger (NYSE: GWW) to $350.00 (from $320.00) while maintaining a Outperform rating.

Analyst Christopher Glynn commented, "GWW raised EPS guidance to $14.30-15.30 (midpoint +$1.25 to $14.80; $1.00 above prior consensus). Adjusted 1Q EPS beat internal expectations by $0.75 (same variance vs. our model), reflecting $0.20 core continuing upside ($0.80 of full year raise), $0.45 of non-continuing benefits (the balance of the raise: ~1/3 tax; 2/3 from contract negotiation timing, a US accounting estimate, and international performance) and $0.10 timing factors that reverse. Mix supported GM upside in 1Q (comparable down 10 bps y-o-y), with the full year expected down 60 bps comparable, as 1Q benefited from timing of contract negotiations (mainly government) and disproportionate share of expected full-year COGS deflation. Still, the volume/mix upside of runway potential to garner market share outside contracts, shows clear traction."

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