Piper Jaffray Views Fastenal Shares As Fairly Valued

According to Piper Jaffray, Fastenal Company FAST shares reflect the improving US manufacturing sector with a solid 1Q performance. Piper Jaffray reported that it continues to view Fastenal shares as fairly valued as their key end markets; manufacturing and non-residential construction, are showing solid growth, but it remains concerned with the increasing level of comps that they begin facing in 2Q and run for the balance of the year. “They remain on track to open ~6% new branches as well as a renewed focus on building out their national accounts and government business, but we do remain guarded on the timing of these benefits as they are already incurring the costs associated with 16+% y/y growth in headcount. We are adjusting our outlook for CY12 and increasing our PT to $68.” Fastenal Company closed yesterday at $64.54.