Fastenal downgraded to Underperform from Peer Perform at Wolfe Research

Wolfe Research downgraded Fastenal (FAST) to Underperform from Peer Perform with a $43 price target The company’s sales have been decelerating, and Wolfe now sees inflationary pressures beginning to weigh on its gross margins, the analyst tells investors in a research note. The firm says that while Fastenal’s multiple has been normalizing lower, there is risk of further compression since the stock’s relative valuation “remains challenging.”