Wesco Reaffirms 2022 Guidance at Its Investor Day; We View Shares as Attractive

Wesco recently held its investor day, where it reaffirmed its 2022 guidance and shared its vision for the future. Recall, the company has been working to integrate its acquisition of close peer, Anixter. So far, management has done a good job of cutting out costs and cross-selling its products. In our view, this acquisition was significant for a couple of reasons. First, is the timing of the deal, which was in the midst of the pandemic. Second, Wesco increased its net leverage to acquire Anixter. Its net debt/trailing 12 month adjusted EBITDA spiked to 5.7 times in June 2020. Management has executed well on both fronts thus far by realizing both cost and revenue synergies, as well as bringing its net leverage down to 3.4 times, just below its target range of 2.0-3.5 times.