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Research Alert: CFRA Keeps Hold Opinion On Shares Of Fastenal Company
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Research Alert: CFRA Keeps Hold Opinion On Shares Of Fastenal Company
Jul 14, 2025 10:47 PM

01:30 AM EDT, 07/15/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Following FAST's Q2 2025 print, we adjust our 12-month target to $42 from $40, valuing shares at 34x our revised 2026 EPS forecast of $1.24 (up from $1.16; 2025 EPS outlook revised to $1.11 from $1.07), above FAST's long-term average amid benefits tied to supply chain reshoring and consistent market share expansion. Q2 2025 EPS of $0.29 was $0.01 above the consensus view, which we attribute to better-than-expected margin performance. Gross margin expanded 20 bps Y/Y to 45.3%, with pricing coming slightly above tariff related cost increases. FAST has a solid playback for adjusting pricing amid inflationary shocks, in our view, which was evident in Q2 2025 results. Contract signings accelerated during the quarter (contract sales up 11% Y/Y), led by large nonmanufacturing accounts. While manufacturing data appears sluggish, FAST's market entrenchment is enabling outperformance. While H1 2025 has been encouraging, we keep FAST shares at Hold given our view that strengths are priced in at current levels.

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