Kevin Steinke, an analyst from Barrington, reiterated the Buy rating on Distribution Solutions Group (DSGR – Research Report). The associated price target is $44.00.
Kevin Steinke has given his Buy rating due to a combination of factors that highlight Distribution Solutions Group’s strong performance and growth potential. The company’s revenue for Q4/24 saw an impressive increase of 18.6% year-over-year, surpassing both the firm’s and market expectations. This growth was significantly bolstered by acquisitions, particularly the acquisition of Source Atlantic, which contributed a substantial portion to the revenue increase.
Moreover, the Gexpro Services segment emerged as a key driver of organic growth, with a notable 28.9% rise in revenue, fueled by recovering demand in technology and renewable energy sectors. Although the TestEquity segment showed modest growth, it indicated improving trends in test and measurement equipment sales. Despite challenges in the Lawson Products segment due to military order delays, the overall outlook remains positive, supported by strategic acquisitions and improving market conditions. These factors collectively underpin Steinke’s optimistic Buy rating for DSGR.