MSC Industrial initiated with an Outperform at Wolfe Research

Wolfe Research analyst Ryan Cooke initiated coverage of MSC Industrial (MSM) with an Outperform rating and $95 price target Recent challenges with execution and machinery end market softness have led to a series of negative EPS revisions, and while near-term estimates have reset to a more appropriate level, Wolfe thinks that the consensus outlook is too punitive, and the path to recovery is being weighed down by recent underperformance, the analyst tells investors in a research note. Wolfe thinks MSM should deliver strong incremental margins once back to growth, though the Street is only embedding high-teens incrementals through FY27.