Research Alert: CFRA Keeps Sell Opinion On Shares Of Ggg
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our 12-month target to $70 from $80, valuing shares at 21x our 2027 EPS outlook of $3.36 (down from $3.46; 2026 EPS estimate revised to $3.10 from $3.18), a discount to GGG's historical multiple average given high uncertainty around a sustained recovery in the housing market. GGG's Q1 print was disappointing, with organic revenues declining amid broad-based weakness across most geographies, particularly in Asia-Pacific. While acquisitions provided some offset to total sales growth, all three segments experienced organic revenue headwinds, with profitability deteriorating. GGG continues to navigate a challenging operating environment given soft residential markets. Pricing continues to prop results up, though ongoing volume decline will continue to limit upside, in our view. Industrial orders were a bright spot in Q1 given an expanding manufacturing base in the U.S., though the downtrend in the Contractor business will need to stabilize to not offset the emerging demand pick-up.