Stephens downgrades WESCO International stock to Equal Weight despite raising price target

Investing.com - Stephens downgraded WESCO International (NYSE:WCC) from Overweight to Equal Weight on Wednesday, while simultaneously raising its price target to $200.00 from $190.00. According to InvestingPro data, WESCO maintains a "GOOD" overall financial health score, with particularly strong price momentum metrics and a market capitalization of $9.7 billion.

The research firm acknowledged WESCO’s strong execution following its Anixter acquisition and noted impressive recent updates regarding the company’s datacenter market opportunity. The company’s solid fundamentals are reflected in its healthy current ratio of 2.15 and robust gross profit margin of 21.6%.

Despite the higher price target, Stephens expressed concern about "limited positive EPS revision potential" and predicted profit-taking in the near term.

The downgrade comes as WESCO shares have gained approximately 50% since April, with the stock now trading at what Stephens describes as "a mid-teens historical peak p/e multiple."

Stephens indicated it would maintain the Equal Weight rating "pending improved visibility to a breakout above the stock’s prior highs."

In other recent news, Wesco International has announced a quarterly cash dividend of $0.45375 per share, payable on June 30, 2025, to shareholders of record as of June 13, 2025. This follows the company’s reported annual sales of approximately $22 billion in 2024. Additionally, KeyBanc raised its price target for Wesco International to $210 from $180, maintaining an Overweight rating, citing the strength in the company’s data center business and potential pricing benefits. Loop Capital, however, adjusted its price target to $220 from $250, retaining a Buy rating, highlighting Wesco’s robust performance and datacenter growth, which are expected to drive sales above the company’s guidance midpoint.

In corporate leadership news, Wesco announced the promotion of Dirk Naylor to Executive Vice President and General Manager of Communications and Security Solutions, effective June 30, 2025. Naylor will succeed William C. Geary II, who is departing to become CEO of a private equity-backed company. At the company’s recent Annual Meeting of Stockholders, ten director nominees were elected, and several key proposals were approved, reflecting strong shareholder support for Wesco’s leadership and strategic direction. The appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025 was also ratified.

These developments underscore Wesco’s commitment to shareholder value and strategic growth, leveraging its strong market position and operational capabilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.