Citi Lowers 4Q10 EPS Estimate on W.W. Grainger

Citi has reiterated its Sell rating and lowered 4Q10 EPS estimate on W.W. Grainger GWW following GWW's analyst day. In a note to clients, Citi writes, "Grainger's annual investor meeting showcased its relentless operating focus on quality, including new wrinkles in its familiar initiatives to drive market share gains and expand profitability in its mature distribution markets. However, the below consensus initial 2011 guidance (but inline with our estimate) was consistent with our thesis that this is not the right time in the cycle to own this early-cycle leveraged name. We recommend shifting into companies with more exposure to early- + mid-cycle markets where recoveries have more momentum, including CBE, ITW, and WCC. We are adjusting our 4Q10 estimate $0.02 lower to match the high end of guidance, and maintaining our 2011/12 estimates and Sell rating." GWW last traded at $124.86.