In a report released yesterday, Sabrina Abrams from Bank of America Securities reiterated a Buy rating on Fastenal Company, with a price target of $48.00.
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Sabrina Abrams’s rating is based on several positive indicators for Fastenal Company. The company reported a significant acceleration in November daily sales, surpassing the monthly benchmark by 120 basis points, which is a positive shift after three months of underperformance. This improvement in sales, coupled with constructive discussions with the company, supports the Buy rating.
Furthermore, Fastenal is showing increased confidence in its pricing strategy, expecting more price increases in the first and likely the second quarter of the upcoming year. This is attributed to suppliers raising prices, which could enhance the company’s gross margins. Additionally, Fastenal’s growth in Europe, despite the challenges faced by distributors in the region, is promising. The company’s European operations are delivering profit, aligning margins with those in the U.S., which further justifies the positive outlook. Lastly, the introduction of 2026 quarterly estimates with an EPS forecast above the market consensus indicates potential for financial outperformance.
FAST’s price has also changed slightly for the past six months – from $40.880 to $41.750, which is a 2.13% increase.