W.W. Grainger stock price target lowered to $930 at BofA on margin concerns\n\nBofA Securities lowered its price target on W.W. Grainger (NYSE:GWW) to $930 from $970 on Monday, while maintaining an Underperform rating following the company’s second-quarter earnings report. The stock, currently trading at $931.61, has declined over 11% in the past week, with InvestingPro data showing 8 analysts recently revising their earnings expectations downward.\n\nThe industrial supply company reported second-quarter earnings per share of $9.97, slightly below BofA’s estimate of $9.99 and the consensus forecast of $10.07. The results were in line with BofA’s EBIT forecast but fell short of broader market expectations. Despite recent challenges, InvestingPro analysis indicates the company maintains strong financial health with a robust current ratio of 2.82x and has consistently paid dividends for 55 consecutive years.\n\nW.W. Grainger reduced its earnings guidance primarily due to gross margin concerns. BofA noted that LIFO expense is driving the majority of the 50 basis point reduction in gross margin guidance, with the company also facing price/cost headwinds. The company maintains a gross profit margin of 39.25% and generates substantial revenue of $17.48 billion over the last twelve months.\n\nBofA expressed concern about W.W. Grainger’s pricing strategy, which implements price changes on January 1, May 1, and September 1, suggesting this approach may cause difficulties in the current environment. The firm’s analysis indicates continued operational challenges related to market share and gross margins.\n\nThe company’s Endless Assortment segment has exceeded BofA’s estimates in the first half of 2025, showing accelerating organic growth and improved margins, though this was not enough to offset the firm’s overall cautious outlook on the stock.\n\nIn other recent news, WW Grainger Inc. reported its financial results for the second quarter of 2025, showcasing a mixed performance. The company exceeded revenue expectations, bringing in $4.55 billion compared to the forecasted $4.53 billion. However, it fell short on earnings per share (EPS), reporting $9.97 against an anticipated $10.06. This earnings miss contributed to a notable decline in the company’s stock price. Additionally, UBS maintained its Neutral rating on Grainger with a price target of $1,160.00, citing an \"operational miss\" due to weaker gross margins in its High Touch Solutions North America segment. Despite this, Grainger achieved slightly better-than-expected SG&A leverage. These developments reflect the ongoing challenges and adjustments the company faces in its operations.

W.W. Grainger stock price target lowered to $930 at BofA on margin concerns

BofA Securities lowered its price target on W.W. Grainger (NYSE:GWW) to $930 from $970, maintaining an Underperform rating after the company’s second-quarter earnings report. The stock declined over 11% in the past week, with analysts revising earnings expectations downward. W.W. Grainger reported EPS of $9.97, slightly below estimates, and faced margin concerns due to LIFO expenses and pricing strategy challenges.