Longbow Research Sees Mixed Factors For W.W. Grainger

In a report published Thursday, Longbow Research analyst Eli Lustgarten reiterated a Neutral rating on W.W. Grainger (NYSE: GWW).

In the report, Longbow Research noted, “We are NEUTRAL-rated on GWW at this time. Overall, we continue to see the gradual improvement we expected for industrial distributors in 2014, but the progress so far continues to be restrained by non-organic headwinds (e.g. weather disruptions in January and February; unfavorable FX; holiday timing benefit in March and detriment in April).

"Many of these should be over for the year so we expect the improving environment to start showing through in May and June. We continue to gain optimism on the industrial distribution space and GWW in particular given its history of gaining market share combined with improving industry growth. Long term growth prospects remain strong for GWW but we remain sidelined for now and wait for more signs of consistent growth.”

W.W. Grainger closed on Wednesday at $252.36.