Piper Jaffray Sees Significant Upside In Fastenal (FAST)

Piper Jaffray sees nearly 40% upside in shares of Fastenal Systems FAST, after Piper Jaffray did channel checks that were better than expected. It has an Overweight rating, and a $63 price target. In a note to clients, Piper Jaffray writes, "Our recent industry channel checks continue to reveal encouraging business trends suggesting y/y growth, in line with, to slightly above our existing 20% y/y forecast for August. Our channel checks included reports of successful company wide sales promotions during August, which should neutralize any macro related slowing, but could potentially pressure 3Q margins depending on the magnitude of the discounts. Historical trends show consistent growth in average daily sales from July to August that should continue this year in light of the sales promotions." Shares of Fastenal closed at $45.27 yesterday, up 18 cents on the day.