Graco Inc

GGG: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$48.00	Vbwr	Kscltyw

Graco Earnings: Price Realization Drives Solid Margin Expansion

Krzysztof Smalec

Jan 30, 2024

Wide-moat-rated Graco ended 2023 on a strong note, as its full-year adjusted EPS of $3.04 beat our estimate by $0.07. After rolling our model forward one year, we’ve raised our fair value estimate to $80 from $77, which reflects our slightly more optimistic midcycle operating margin assumptions as well as time value of money. We see shares as fairly valued at current levels.

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