Bernstein starts Fastenal with Underperform on ‘expensive’ valuation

Bernstein initiated coverage of Fastenal (FAST) with an Underperform rating and $38 price target The shares trade at an “expensive” relative valuation, the analyst tells investors in a research note. The firm expects Fastenal’s earnings growth to peak around mid-to-high teens in the next two quarters before decelerating back to 7%. With this, the stock will see relative multiple compression and underperform peers, contends Bernstein.