Zacks Investment Research downgraded shares of WESCO International Inc. (WCC) from OUTPERFORM to NEUTRAL on April 16, 2013, with a target price of $70.00.
WESCO is one of the largest distributors of electrical products in the U.S. The company's fourth quarter earnings and forward guidance missed the Zacks Consensus Estimates. WESCO's strong market position, the turnaround in the industrial and utility markets, gradual recovery in the construction market, the global account model, restructuring benefits and the LEAN initiative are positive factors. However, results bear a positive correlation to GDP growth, which has been sluggish in recent times. Additionally, while EECOL will add to earnings this year, it resulted in a significant increase in debts, which makes the shares more risky. We are therefore downgrading WESCO shares to Neutral.
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