Grainger(US:GWW) Soochow Securities international·2024-06-04 09:31Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for the stock over the next six months [6]. Core Insights - The company exhibits strong organic growth driven by acquisitions, which contribute to long-term growth potential. From 2009 to 2023, the company's revenue increased by 165%, with volume contributing nearly 80% to this growth [2][6]. - The stock price performance is closely linked to macroeconomic conditions, with periods of strong performance aligning with economic recovery phases, while downturns correspond to economic crises [2][6]. - The company is expected to achieve revenue growth of 4.4%, 6.1%, and 7.0% for the years 2024, 2025, and 2026, respectively, with corresponding net profit growth of 2.2%, 9.6%, and 10.3% [2][6]. Financial Forecasts - Revenue projections for 2024, 2025, and 2026 are $17,194 million, $18,239 million, and $19,539 million, respectively, with year-over-year growth rates of 4.4%, 6.1%, and 7.0% [2][28]. - Net profit forecasts for the same years are $1,870 million, $2,050 million, and $2,260 million, with growth rates of 2.2%, 9.6%, and 10.3% [2][28]. - The price-to-earnings (P/E) ratios are projected to be 24, 22, and 20 for 2024, 2025, and 2026, respectively [2][28].