MSC Industrial Shares Gain 1.27% After Two Analysts Raise Targets

MSC Industrial Supply Co. shares rose 1.27% Friday, Oct. 23, to close at $113.86 as Jefferies and Stephens upgraded the stock and raised their price targets, a day after shares fell 15.35% following fiscal fourth-quarter results.

Jefferies analyst Stephen Volkmann upgraded MSC to Buy from Hold and raised his target to $135 from $130. Stephens analyst Tommy Moll upgraded the stock to Overweight from Equal Weight and raised his target to $135 from $130.

MSC closed at $132.82 on Oct. 21, then fell to $112.43 Thursday, Oct. 22. Friday’s close was up from Thursday’s level.

The fiscal fourth quarter ended Aug. 29, 2026. Net sales increased 10.3% year over year to $1.0792 billion, while average daily sales rose 8.6%. Net income attributable to MSC fell 15.2% to $47.9 million, and diluted earnings per share declined 15.8% to $0.85.

Sales exceeded the $1.07 billion analyst estimate, and adjusted diluted earnings per share of $1.45 topped the $1.41 estimate. Average daily sales growth also came in above MSC’s earlier fourth-quarter outlook range of 6.5% to 8.5%.

The quarter included a $41.774 million pretax charge tied to implementation of the company’s Digital Core program. The charge comprised $23.371 million for capitalized project costs and $18.403 million for future contractual obligations. MSC previously outlined its move away from the Digital Core program.

GAAP operating income fell 13.6% to $72.8 million, and operating margin was 6.7%, down from 8.6% a year earlier. On an adjusted basis, operating income was $117.8 million, operating margin was 10.9% and diluted earnings per share rose 33% to $1.45.

“Average daily sales exceeded the high end of our guided range, driven by price benefits and stronger volumes,” said Rob Kuhns, MSC’s executive vice president and chief financial officer.

For fiscal 2026, net sales totaled $4.0097 billion, up 6.4%, and net income attributable to MSC rose 11.7% to $222.6 million. The company’s fiscal first-quarter 2027 outlook calls for average daily sales growth of 9.5% to 10.5% and adjusted operating margin of 9.5% to 10.1%. MSC distributes metalworking and maintenance, repair and operations products and services.