WW Grainger (GWW) PT Raised to $380 at Oppenheimer

Oppenheimer raised its price target on WW Grainger (NYSE: GWW) to $380.00 (from $350.00) while maintaining an Outperform rating, saying commercial execution remains strong.

Analyst Christopher Glynn commented, "Restructuring cost savings, demand response from customer segments targeted by price resets, and overall sales execution in the improved macro environment supported a large beat and raise once again. GWW's 2Q EPS beat internal expectations by ~$0.60, including about $0.50 from operating income upside, and GWW included about $0.15 operating upside for 2H18. In this light, 2H looks conservative, perhaps given "magnitude of success of 1H18 market traction. Medium customer volumes expanded similarly to 1Q, despite some initial success in share trend improvement in 2Q last year, so sequential momentum clearly intact. Digital marketing effectiveness should continue to improve, with some parallels to SCO compounding success within Other Businesses, but noting established brand in Grainger serving medium-sized customer vs. Zoro.

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