D.A. Davidson Initiates Coverage on 16 Industrial Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: seekingalpha
- Industry Recovery Signals: D.A. Davidson's survey indicates a 5.8% year-over-year sales growth for private industrial distributors in May, marking the strongest expansion period since late 2025, suggesting an improving manufacturing cycle that could drive overall sector growth.
- Top Investment Picks: Analyst Chris Dankert identified MSC Industrial (MSM), Regal Rexnord (RRX), and Wesco International (WCC) as high-conviction investments, anticipating these companies will benefit from long-term demand drivers such as data center construction, automation, and reshoring.
- Price Target Establishment: D.A. Davidson initiated a Buy rating on MSC Industrial with a $145 price target, expecting it to benefit from strengthening industrial demand and rising cutting-tool prices, while also achieving margin expansion through sales force realignment and digital upgrades.
- Long-Term Growth Drivers: The firm highlighted that long-term growth factors such as data center expansion, semiconductor manufacturing investment, and power infrastructure upgrades will support industrial companies beyond the current cycle, further solidifying the foundation for industry recovery.
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Analyst Views on MSM
Wall Street analysts forecast MSM stock price to fall
5 Analyst Rating
1 Buy
4 Hold
0 Sell
Hold
Current: 115.180
Low
90.00
Averages
93.33
High
96.00
Current: 115.180
Low
90.00
Averages
93.33
High
96.00
About MSM
MSC Industrial Direct Co, Inc. is a distributor of a range of metalworking and maintenance, repair and operations (MRO) products and services. Its range of metalworking and MRO products includes cutting tools, measuring instruments, tooling components, metalworking products, fasteners, flat stock, raw materials, abrasives, machinery hand and power tools, safety and janitorial supplies, plumbing supplies, materials handling products, power transmission components and electrical supplies. It offers saleable stock-keeping units through its e-commerce channels, including its Website https://www.mscdirect.com; its inventory management solutions; its brochures, and its customer care centers, customer fulfillment centers, regional inventory centers and warehouses. It offers advanced tools that integrate its solutions with customer purchasing platforms and workflows. This includes straightforward integrations, such as embedding customer inventory levels into searches on the Company’s Website.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
D.A. Davidson Initiates Coverage on 16 Industrial Companies
- Industry Recovery Signals: D.A. Davidson's survey indicates a 5.8% year-over-year sales growth for private industrial distributors in May, marking the strongest expansion period since late 2025, suggesting an improving manufacturing cycle that could drive overall sector growth.
- Top Investment Picks: Analyst Chris Dankert identified MSC Industrial (MSM), Regal Rexnord (RRX), and Wesco International (WCC) as high-conviction investments, anticipating these companies will benefit from long-term demand drivers such as data center construction, automation, and reshoring.
- Price Target Establishment: D.A. Davidson initiated a Buy rating on MSC Industrial with a $145 price target, expecting it to benefit from strengthening industrial demand and rising cutting-tool prices, while also achieving margin expansion through sales force realignment and digital upgrades.
- Long-Term Growth Drivers: The firm highlighted that long-term growth factors such as data center expansion, semiconductor manufacturing investment, and power infrastructure upgrades will support industrial companies beyond the current cycle, further solidifying the foundation for industry recovery.
See More
Analysis of Industrial Services Sector Outlook
- Cost Pressures: The industrial services sector is grappling with rising labor, freight, and fuel costs, leading companies to increase prices to meet demand, which negatively impacts overall profitability.
- Manufacturing Activity Rebound: The manufacturing index rebounded to 52.6% in January 2026 and remained at 54% in May, indicating improved demand conditions, although high oil prices and geopolitical uncertainties continue to weigh on customer sentiment.
- E-commerce Growth Driver: With rising internet penetration and smartphone adoption, customer demand for efficient, real-time information and rapid delivery is increasing, prompting industrial service companies to invest heavily in enhancing their digital capabilities and e-commerce share.
- Poor Industry Ranking: The Zacks Industrial Services industry currently ranks 182, placing it in the bottom 26% of 247 industries, indicating bleak short-term prospects as the sector's growth lags behind overall market performance.
See More
Metalsource Mining Issues Restricted Share Units and Corrects Stock Options
- Share Units Granted: Metalsource Mining Inc. has granted a total of 605,000 restricted share units to consultants, valid for a term of two years and subject to a four-month statutory hold period, thereby enhancing the company's incentive mechanism for its advisors.
- Options Issuance Correction: The company corrected its previous announcement, confirming that the actual number of stock options issued was 2,000,000, exercisable at $1.60 per share and valid for two years, which helps improve information transparency and investor confidence.
- Company Background: Metalsource Mining Inc. is a Canadian mineral exploration company focused on advancing high-potential mineral assets through modern, systematic exploration and value-driven discovery, showcasing its strategic positioning in the mining sector.
- Cautionary Note on Forward-Looking Statements: The company's release includes forward-looking information, cautioning investors about potential risks and uncertainties that may lead to significant differences between actual results and expectations, emphasizing the company's responsibility and transparency to investors.
See More
MSC Industrial Stock Rises 6.3%, Target Price Set at $117
- Stock Surge: MSC Industrial's stock rose 6.3% in Monday's trading, potentially reaching its highest-ever closing price, reflecting market optimism about the company's future performance.
- Rating Upgrade: KeyBanc upgraded MSC Industrial from Sector Weight to Overweight with a target price of $117, indicating analysts' confidence in new CEO Martina McIsaac's leadership.
- Cost Structure Improvement: Analyst Ken Newman noted that MSC Industrial is poised to significantly enhance operating leverage through improved cycle volumes and additional cost reductions, with plans to cut approximately 1,000 back-office and warehouse positions, potentially saving around $50 million annually.
- Earnings Potential: Assuming a strong cycle inflection, Newman believes MSC Industrial could exceed $6 per share in earnings by FY 2027, highlighting the company's robust profitability potential during industry recoveries.
See More
Major Wall Street Rating Updates on Monday
- Cohu Rating Reiteration: Jefferies reiterates its Buy rating on Cohu with a price target of $55, viewing the company as an emerging enabler of higher-complexity semiconductor testing, which could enhance its market position significantly.
- Rollins Upgrade: Rothschild & Co Redburn upgrades Rollins from Neutral to Buy, raising the price target from $51.90 to $66, indicating a 16% upside, as they see the current share price as an attractive entry point for investors.
- Nutrien Upgrade: Barclays upgrades Nutrien from Equal Weight to Overweight, increasing the price target from $80 to $85, anticipating continued strength in the nitrogen segment due to the Iran conflict, which positions the company favorably in the market.
- Galaxy Digital Initiation: Chardan initiates coverage of Galaxy Digital with a Buy rating, highlighting its attractive position in the digital asset ecosystem and potential for integration with traditional financial markets, which could drive future growth.
See More
MSC Industrial Direct Co., Inc.: KeyBanc Upgrades Rating to Overweight from Sector Weight
Key Insights: The article discusses the recent changes in sector weightings and their implications for investment strategies.
Market Impact: It highlights how these adjustments may influence the performance of various sectors in the market.
See More
D.A. Davidson Initiates Coverage on 16 Industrial Companies
- Industry Recovery Signals: D.A. Davidson's survey indicates a 5.8% year-over-year sales growth for private industrial distributors in May, marking the strongest expansion period since late 2025, suggesting an improving manufacturing cycle that could drive overall sector growth.
- Top Investment Picks: Analyst Chris Dankert identified MSC Industrial (MSM), Regal Rexnord (RRX), and Wesco International (WCC) as high-conviction investments, anticipating these companies will benefit from long-term demand drivers such as data center construction, automation, and reshoring.
- Price Target Establishment: D.A. Davidson initiated a Buy rating on MSC Industrial with a $145 price target, expecting it to benefit from strengthening industrial demand and rising cutting-tool prices, while also achieving margin expansion through sales force realignment and digital upgrades.
- Long-Term Growth Drivers: The firm highlighted that long-term growth factors such as data center expansion, semiconductor manufacturing investment, and power infrastructure upgrades will support industrial companies beyond the current cycle, further solidifying the foundation for industry recovery.
See More
Analysis of Industrial Services Sector Outlook
- Cost Pressures: The industrial services sector is grappling with rising labor, freight, and fuel costs, leading companies to increase prices to meet demand, which negatively impacts overall profitability.
- Manufacturing Activity Rebound: The manufacturing index rebounded to 52.6% in January 2026 and remained at 54% in May, indicating improved demand conditions, although high oil prices and geopolitical uncertainties continue to weigh on customer sentiment.
- E-commerce Growth Driver: With rising internet penetration and smartphone adoption, customer demand for efficient, real-time information and rapid delivery is increasing, prompting industrial service companies to invest heavily in enhancing their digital capabilities and e-commerce share.
- Poor Industry Ranking: The Zacks Industrial Services industry currently ranks 182, placing it in the bottom 26% of 247 industries, indicating bleak short-term prospects as the sector's growth lags behind overall market performance.
See More
Metalsource Mining Issues Restricted Share Units and Corrects Stock Options
- Share Units Granted: Metalsource Mining Inc. has granted a total of 605,000 restricted share units to consultants, valid for a term of two years and subject to a four-month statutory hold period, thereby enhancing the company's incentive mechanism for its advisors.
- Options Issuance Correction: The company corrected its previous announcement, confirming that the actual number of stock options issued was 2,000,000, exercisable at $1.60 per share and valid for two years, which helps improve information transparency and investor confidence.
- Company Background: Metalsource Mining Inc. is a Canadian mineral exploration company focused on advancing high-potential mineral assets through modern, systematic exploration and value-driven discovery, showcasing its strategic positioning in the mining sector.
- Cautionary Note on Forward-Looking Statements: The company's release includes forward-looking information, cautioning investors about potential risks and uncertainties that may lead to significant differences between actual results and expectations, emphasizing the company's responsibility and transparency to investors.
See More
MSC Industrial Stock Rises 6.3%, Target Price Set at $117
- Stock Surge: MSC Industrial's stock rose 6.3% in Monday's trading, potentially reaching its highest-ever closing price, reflecting market optimism about the company's future performance.
- Rating Upgrade: KeyBanc upgraded MSC Industrial from Sector Weight to Overweight with a target price of $117, indicating analysts' confidence in new CEO Martina McIsaac's leadership.
- Cost Structure Improvement: Analyst Ken Newman noted that MSC Industrial is poised to significantly enhance operating leverage through improved cycle volumes and additional cost reductions, with plans to cut approximately 1,000 back-office and warehouse positions, potentially saving around $50 million annually.
- Earnings Potential: Assuming a strong cycle inflection, Newman believes MSC Industrial could exceed $6 per share in earnings by FY 2027, highlighting the company's robust profitability potential during industry recoveries.
See More
Major Wall Street Rating Updates on Monday
- Cohu Rating Reiteration: Jefferies reiterates its Buy rating on Cohu with a price target of $55, viewing the company as an emerging enabler of higher-complexity semiconductor testing, which could enhance its market position significantly.
- Rollins Upgrade: Rothschild & Co Redburn upgrades Rollins from Neutral to Buy, raising the price target from $51.90 to $66, indicating a 16% upside, as they see the current share price as an attractive entry point for investors.
- Nutrien Upgrade: Barclays upgrades Nutrien from Equal Weight to Overweight, increasing the price target from $80 to $85, anticipating continued strength in the nitrogen segment due to the Iran conflict, which positions the company favorably in the market.
- Galaxy Digital Initiation: Chardan initiates coverage of Galaxy Digital with a Buy rating, highlighting its attractive position in the digital asset ecosystem and potential for integration with traditional financial markets, which could drive future growth.
See More
MSC Industrial Direct Co., Inc.: KeyBanc Upgrades Rating to Overweight from Sector Weight
Key Insights: The article discusses the recent changes in sector weightings and their implications for investment strategies.
Market Impact: It highlights how these adjustments may influence the performance of various sectors in the market.
See More
