S&P Capital Reiterates its STRONG BUY Rating on Fastenal

October 14 00:00 2011

NEW YORK, October 14 (FinanceEnquriy.com) – Analyst Michael Jaffe of S&P Capital IQ reiterates his STRONG BUY rating on the shares of  Fastenal (NASDAQ: FAST), while reducing the estimates for the company. The target price is maintained at $48.

Analyst Michael Jaffe, in a research note published yesterday mentions that the company reported Q3 EPS marginally short of the estimates. However, business is going sturdy with daily sales rising by 18% and 16% from manufacturing and non-residential constructions customers, respectively, the analyst says. The company recorded a store-opening rate of 5% in 2011, which fell short of the guidance of 7%-8%. The company’s new initiative of installing vending machines may offset the sales impact caused largely by their conservative approach of store openings, the analyst adds. The EPS estimate for 2012 has been reduced from $1.50 to $1.45.