RBC upgrades Wesco on easing earnings volatility concerns

RBC Capital analyst Deane Dray upgraded Wesco (WCC) to Outperform from Sector Perform with a price target of $302, up from $262. The company reported a “beat-and-raise” Q3 and should see a “more predictable earnings cadence” going forward, the analyst tells investors in a research note. RBC believes Wesco’s datacenter growth and “inflection” in power utility should ease concerns about its short-cycle earnings volatility. As the market leader in electrical distribution, Wesco provides exposure to secular drivers in electrification, datacenter, power generation and reshoring, contends the firm. It sees an attractive valuation at current share levels.