Wesco International price target raised to $210 from $180 at KeyBanc

KeyBanc raised its price target on Wesco International (NYSE:WCC) to $210 from $180 on Friday, while maintaining an Overweight rating on the stock. The increased target reflects continued strength in the company’s data center business and potential benefits from pricing actions that could support modest upside to second-half 2025 estimates. According to InvestingPro data, analyst targets for WCC range from $180 to $230, with the stock currently trading at $176.77.

The research firm highlighted the growth of Wesco’s gray-space revenue, which has increased by approximately $400 million on a last-twelve-months basis compared to zero a year ago. Gray-space revenue occurs during the earlier stages of data center project life cycles and likely provides solid visibility for higher-margin white-space activity as projects progress. With a market capitalization of $8.63 billion and annual revenue of $21.8 billion, Wesco has established itself as a significant player in the Trading Companies & Distributors industry.

KeyBanc noted that project bid activity remains strong, and Wesco has solid visibility into hyperscale build-outs over the next two to three years. Despite a fluid tariff environment, the firm believes Wesco can still implement modest price increases in the second half of 2025. InvestingPro analysis reveals the company’s strong financial health, with liquid assets exceeding short-term obligations and consistent profitability over the last twelve months. Subscribers can access 6 additional ProTips and comprehensive financial metrics on the platform.

According to KeyBanc, supplier-based price notifications were up 150% year-over-year in April, with these increases averaging high single digits, estimated at approximately 8%. The company expects these price increases to flow through to the profit and loss statement beginning in the second half of 2025. For detailed analysis of Wesco’s pricing power and growth potential, check out the comprehensive Pro Research Report available exclusively on InvestingPro.

The new price target implies 13.1x price-to-earnings and 9.3x enterprise value to EBITDA on KeyBanc’s fiscal year 2026 estimates, compared to Wesco’s five-year averages of 10.2x price-to-earnings and 8.3x enterprise value to EBITDA. Current metrics show a P/E ratio of 13.15x and an EV/EBITDA of 9.8x, suggesting the stock is trading in line with KeyBanc’s valuation framework.

In other recent news, Wesco International reported its first-quarter 2025 financial results, revealing earnings per share (EPS) of $2.21, missing the forecasted $2.33. However, the company exceeded revenue expectations with $5.34 billion, surpassing the anticipated $5.27 billion. Additionally, Wesco announced a quarterly cash dividend of $0.45375 per share, reflecting its financial health and commitment to shareholders. At its Annual Meeting of Stockholders, Wesco’s shareholders elected ten director nominees and approved key proposals, including executive compensation and amendments to the company’s Certificate of Incorporation. Meanwhile, Loop Capital and Oppenheimer adjusted their price targets for Wesco, with Loop Capital reducing it to $220 while maintaining a Buy rating, and Oppenheimer lowering it to $195 but retaining an Outperform rating. Analysts highlighted the robust performance of Wesco’s datacenter business, which significantly contributed to sales growth. Despite facing challenges in its Electrical & Electronic Solutions segment, Wesco remains optimistic about future growth, particularly in its Utility Broadband Solutions segment.

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