JPMorgan Upgrades MSC Industrial (MSC) to Overweight, Lifts PT

On May 27, JPMorgan analyst Patrick Baumann upgraded MSC Industrial Direct Co., Inc. (NYSE:MSM) to Overweight from Neutral and also raised the price target from $73 to $89. The upgraded outlook reflects tariff driven U.S. distributor price advantage in the industry.

A machine shop filled with high-precision tools and components representing the quality of the company’s metalworking products.

MSC Industrial Direct Co., Inc. (NYSE:MSM) is a leading distributor of metalworking and maintenance, repair, and operations (MRO) products. It offers a wide range of tools, fasteners, safety supplies, and raw materials through its e-commerce platform, warehouses, and inventory management solutions.

Patrick Baumann noted the company appears to be a “turnaround story”, where growth has been a challenge. This is also reflected by the company’s average 2.48% sales growth over the past 5 years. However, the analyst sees the overall industry and MSC Industrial Direct Co., Inc. (NYSE:MSM) benefitting from tariff-driven prices and stability in short-cycle industrial end markets. These factors, combined with MSC’s progress in solution-based sales, such as vending and inventory management, and productivity initiatives, underpin the positive outlook.

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Disclosure: None.