KeyBanc Reiterates Sector Weight Rating on MSC Industrial (MSM)

KeyBanc analyst Ken Newman reiterated a Sector Weight rating on MSC Industrial (NYSE: MSM).

The analyst commented, "This morning, MSM reported its F3Q results, which were in line with the Company's negative preannouncement last month. On the call, management noted that the overall environment remains soft, with ongoing weakness most prominent in the Company's core customer base. While we are encouraged by management's commitment to quickly remedy the web price realignment issues and improve internal performance, we think NT opex increases imply that EBIT margins could be pressured downward through F1H25 in the absence of a material reacceleration in market volumes. We think the combination of limited visibility and weakening macro indicators makes an inflection in customer demand difficult to call, and think a cautious approach to both ADS growth and operating leverage in FY25 remains prudent. As such, we view risk/reward as balanced at current levels and maintain our Sector Weight rating."

For an analyst ratings summary and ratings history on MSC Industrial click here. For more ratings news on MSC Industrial click here.

Shares of MSC Industrial closed at $80.02 yesterday.

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