KeyBanc Capital Markets has raised its price target on WESCO International (NYSE:WCC) to $340.00 from $304.00, while keeping an Overweight rating on the stock. The new target implies roughly a 14% upside relative to the current share price of $297.73. WESCO shares have already produced a strong one-year return of 53.07%.
The change in KeyBanc's view followed WESCO's reported fourth-quarter results. After reviewing those figures the firm reduced its fiscal year 2026 earnings per share estimates, but nonetheless lifted the price objective to reflect what it regards as the company's revised outlook - an outlook KeyBanc considers possibly conservative.
Analyst consensus data shows a forecasted EPS of $15.82 for fiscal year 2026. WESCO's underlying fundamentals remain intact, including a gross profit margin of 21.15%.
KeyBanc noted disappointment with the weaker margins seen during the quarter, but did not characterize the headwinds within WESCO's Utility and Broadband Solutions segment as structural. The research team expects margins to improve through 2026.
As a member of the Trading Companies & Distributors industry, WESCO's financial position remains sound. The company carries an Altman Z-Score of 3.7, a metric cited by KeyBanc to indicate solid financial stability despite the short-term earnings pressures.
The research firm also pointed to a management approach that could be conservative in setting fiscal 2026 guidance. Specifically, KeyBanc highlighted that the company did not assume any incremental contributions from pricing and modeled only mid-teens growth for the data center end market in its guidance assumptions.
WESCO's fourth-quarter 2025 financials showed a mixed picture. Adjusted earnings per share were $3.40, below analyst expectations of $3.89. Revenue for the quarter was $6.1 billion, however, which surpassed the forecast of $6.03 billion. These results underscore WESCO's capacity to generate top-line outperformance while also illustrating pressures on profitability during the period.
KeyBanc's overall assessment is that the company's risk/reward profile remains positive despite near-term challenges. The firm appears to be weighing the stronger revenue performance and healthy balance-sheet indicators against recent margin weakness and conservative near-term guidance.
Investors and market participants will likely monitor margin trends in the Utility and Broadband Solutions segment, management's execution against its 2026 guidance, and any updates to assumptions around pricing and data center growth. The combination of a raised price target, retained Overweight rating, and mixed quarterly results presents a nuanced picture for evaluating WESCO's near-term outlook.