Graco Is Poised for Another Year of Strong Revenue Growth, Ending 2021 With Record Backlog

Wide-moat-rated Graco delivered solid fourth-quarter results, as its full-year revenue of $1,988 million and adjusted EPS of $2.44 both exceeded our expectations of $1,947 million and $2.37. After rolling our model forward one year, we’ve increased our fair value estimate for Graco to $76 from $73, which reflects an improved near-term outlook, time value of money, as well as reversing the implementation of a probability-weighted change in the U.S. statutory tax rate in our model. We view the stock as fairly valued at current levels.