Fastenal stock rating maintained by KeyBanc amid pricing pressure

Investing.com - KeyBanc Capital Markets maintained its Sector Weight rating on Fastenal (NASDAQ:FAST) following the company’s third-quarter results, which showed weaker-than-expected price realization. The stock has declined nearly 11% over the past week, with InvestingPro data showing the company trading at a P/E ratio of 39.6x and an EV/EBITDA multiple of 27.2x.

The industrial distributor has revised its pricing expectations downward, now projecting increases of 3.5-5.5% exiting the fourth quarter of 2025, compared to previous guidance of 5-8%.

According to KeyBanc, this pricing adjustment reflects Fastenal’s strategy to pursue stronger market share gains with larger customers in what it describes as a "tepid macro environment."

The research firm noted that slower pricing could potentially limit forward incremental margins, particularly as SG&A headwinds related to higher bonus compensation are expected to persist through the second quarter of 2026.

KeyBanc concluded that considering these factors in relation to Fastenal’s current valuation, the risk/reward profile for the stock appears balanced.

In other recent news, Fastenal Company reported its third-quarter earnings, which fell short of analyst expectations. Despite the earnings miss, the company experienced solid revenue growth during the period. The announcement was made on Monday, and it led to a 4% drop in the company’s shares in pre-market trading. The earnings report highlights a divergence between revenue performance and profit expectations, which can be crucial for investors assessing the company’s financial health. These developments are part of the latest updates concerning Fastenal’s financial activities.

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