BNP Paribas Exane Has Lowered Expectations for Graco (NYSE:GGG) Stock Price

Key Points

• BNP Paribas Exane cut Graco’s price target from $95 to $85 while maintaining an “outperform” rating, implying roughly 26.7% upside from the prior close.
• Analyst sentiment is mixed: Graco has a consensus “Hold” rating and an average price target of $87.40, with other firms also reducing targets or downgrading the stock.
• Graco shares fell 3.2% to $67.08 after quarterly EPS and revenue came in below estimates, despite 7.9% year-over-year revenue growth; margin pressure and weaker near-term guidance remain concerns.

Graco (NYSE:GGG - Get Free Report) had its price target reduced by research analysts at BNP Paribas Exane from $95.00 to $85.00 in a note issued to investors on Friday, Benzinga reports. The firm presently has an "outperform" rating on the industrial products company's stock. BNP Paribas Exane's price objective would suggest a potential upside of 26.71% from the stock's previous close.

Other analysts have also issued research reports about the company. Wolfe Research lowered Graco from an "outperform" rating to a "peer perform" rating in a report on Thursday, July 9th. Royal Bank Of Canada reiterated an "outperform" rating and set a $82.00 price target (down from $95.00) on shares of Graco in a report on Friday. DA Davidson reiterated a "neutral" rating and set a $85.00 price target on shares of Graco in a report on Monday, July 27th. Weiss Ratings raised Graco from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, August 4th. Finally, Robert W. Baird set a $80.00 target price on Graco in a research report on Friday. Three analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Graco currently has a consensus rating of "Hold" and a consensus price target of $87.40.

Graco Stock Down 3.2%

GGG stock traded down $2.20 during mid-day trading on Friday, reaching $67.08. 1,762,515 shares of the stock traded hands, compared to its average volume of 1,439,613. Graco has a 52 week low of $66.55 and a 52 week high of $95.69. The business has a 50-day moving average of $78.52 and a two-hundred day moving average of $78.41. The firm has a market capitalization of $10.86 billion, a PE ratio of 21.10, a P/E/G ratio of 2.54 and a beta of 0.89.

Graco (NYSE:GGG - Get Free Report) last issued its quarterly earnings results on Wednesday, October 21st. The industrial products company reported $0.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.83 by ($0.02). Graco had a net margin of 22.40% and a return on equity of 19.81%. The business had revenue of $586.39 million during the quarter, compared to analyst estimates of $590.17 million. During the same period in the prior year, the business posted $0.73 earnings per share. The company's revenue for the quarter was up 7.9% compared to the same quarter last year. On average, equities research analysts anticipate that Graco will post 3.22 EPS for the current fiscal year.

Institutional Trading of Graco

Institutional investors have recently made changes to their positions in the business. Cassaday & Co Wealth Management LLC acquired a new position in Graco in the first quarter worth about $26,000. Whipplewood Advisors LLC lifted its stake in Graco by 2,650.0% during the first quarter. Whipplewood Advisors LLC now owns 330 shares of the industrial products company's stock worth $28,000 after purchasing an additional 318 shares during the period. Essential Partners LLC boosted its holdings in Graco by 78.6% during the first quarter. Essential Partners LLC now owns 359 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 158 shares in the last quarter. Root Financial Partners LLC boosted its holdings in Graco by 43.2% during the first quarter. Root Financial Partners LLC now owns 504 shares of the industrial products company's stock valued at $43,000 after purchasing an additional 152 shares in the last quarter. Finally, Elevation Wealth Partners LLC boosted its holdings in Graco by 2,540.0% during the second quarter. Elevation Wealth Partners LLC now owns 528 shares of the industrial products company's stock valued at $40,000 after purchasing an additional 508 shares in the last quarter. 93.88% of the stock is currently owned by institutional investors and hedge funds.

Graco News Summary

Here are the key news stories impacting Graco this week:

• Positive Sentiment: Graco reported record third-quarter sales of $586.4 million, up 7.9% year over year, while organic incoming orders increased 7%. The growth suggests underlying demand remains healthy. Graco: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Graco’s ETM subsidiary signed a technology licensing agreement with ABB for data-center cooling towers and heat-rejection systems, providing potential exposure to expanding data-center infrastructure spending. Graco Announces Technology Partnership with ABB
• Neutral Sentiment: Technical indicators show GGG is oversold after the recent selloff, and analysts have broadly raised earnings estimates. That could support a short-term rebound, although it does not resolve the company’s weaker near-term guidance. Graco Buy the Dip Analysis
• Negative Sentiment: Third-quarter adjusted EPS of $0.81 and revenue of $586.4 million fell short of Wall Street expectations. Operating earnings declined 10% year over year to $148.1 million, indicating margin compression despite sales growth. Graco Stock Falls on Q3 Earnings
• Negative Sentiment: Fourth-quarter revenue guidance of $610 million to $640 million is below the $641.8 million consensus estimate. The outlook reinforces investor concerns that demand or pricing may not fully offset cost pressures, keeping the stock’s near-term risk skewed lower. Graco Stock Drops as Q3 Results Spotlight Margin Compression

Graco Company Profile

Graco Inc is a global manufacturer of equipment used to move, measure, control, dispense and apply fluids and other materials. Its products are used in industrial, commercial and residential applications involving paints, coatings, sealants, adhesives, lubricants, chemicals and other fluids.

The company's product portfolio includes pumps, valves, meters, regulators, fluid-management systems, lubrication equipment, spray-applied coating and finishing systems, sealant and adhesive equipment, and contractor-oriented painting and texture application tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.