Graco Inc

GGG: XNYS (USA)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
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Graco Earnings: Continued Softness in China and Semiconductor End Market

Wide-moat-rated Graco’s fourth-quarter adjusted EPS of $0.64 fell $0.15 short of our expectations. Nonetheless, we view headwinds in China and in the semiconductor market as temporary, and we’ve kept our long-term projections largely unchanged. After rolling our model forward one year, we’ve slightly raised our fair value estimate to $79 per share from $78, mostly due to time value of money.

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