William Blair analyst Ryan Merkel has maintained their bullish stance on FAST stock, giving a Buy rating on October 10.
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Ryan Merkel has given his Buy rating due to a combination of factors that suggest Fastenal Company is poised for growth despite recent challenges. Although there was a slight miss in SG&A expenses and September’s average daily sales, Merkel maintains confidence in Fastenal’s ability to achieve double-digit growth by the end of 2025 and into 2026. This optimism is supported by the company’s success in securing large contracts, which have increased by 15%, indicating a growing market share.
Furthermore, Fastenal’s gross margin exceeded expectations, and investments in inventory and product mix are expected to continue yielding positive results. While the SG&A expenses were higher than anticipated due to employee bonus adjustments, the overall financial outlook remains strong. Merkel believes that the recent dip in stock price presents a buying opportunity, as sales are projected to accelerate in the fourth quarter, and the company is well-positioned to benefit from its strategic investments.
Merkel covers the Industrials sector, focusing on stocks such as Fastenal Company, QXO Inc, and SiteOne Landscape Supply. According to TipRanks, Merkel has an average return of 8.2% and a 57.72% success rate on recommended stocks.
In another report released on October 10, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $52.00 price target.