RXEEY - WESCO Still Offers Electrification-Driven Upside

• As the largest electrical distributor in the U.S., WESCO should be well-placed to benefit from a major electrification capex cycle involving industrial, non-residential/institutional, and utility customers.
• Anixter enhances WESCO's scale in electrical distribution, but even moreso in data center, broadband, and utility distribution, and creates meaningful synergy and margin scale opportunities.
• If WESCO can outgrow GDP by around 100bp and boost FCF margins into the 4% (from a historical average a bit above 3%), the shares are meaningfully undervalued today.

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