- MSC Industrial came up a little short on revenue, but adjusted margins were okay and the core business returned to growth in March as a broad rebound is driving metalworking.
- MSC has good leverage to heavy manufacturing, including strong markets like heavy machinery, and the company's efforts to boost its core metalworking business could be additive.
- Overall execution on the Mission Critical plan remains a key unknown; past efforts to drive increased share/sales growth and better margins achieved little and management credibility is not high.
- A stronger cycle and strong management execution can drive a triple-digit share price, but neither driver is certain and the shares aren't obviously cheap.
For further details see:
MSC Industrial's Markets Are Returning To Growth, But Follow-Through Is Essential