Stephens upgrades Wesco stock rating on data center strength

Stephens upgrades Wesco stock rating on data center strength

US concludes third round of strikes against Iran after Trump reinstates blockade Investing.com - Stephens upgraded Wesco International (NYSE:WCC) to Overweight from Equal Weight on Monday and raised its price target to $400 from $350. The firm cited the company’s pullback of approximately 10% from recent highs through the summer and investor support for the company’s valuation following strong execution in the data center vertical. The stock has delivered a remarkable 68% return over the past year and is up 36% year-to-date, trading at $330.84 with a market cap of $16.1 billion.

According to an InvestingPro tip, the company has demonstrated high returns over the last year, reflecting strong investor confidence. Stephens noted that roughly half of Wesco’s total sales is expected to come from data centers and utilities by 2027. The firm said achieving the company’s long-term mid-single-digit to high-single-digit percentage sales growth target appears increasingly likely.

Wesco’s recent revenue growth of 11% supports this optimistic outlook, though the stock trades at a P/E ratio of 23.4. For deeper insights, investors can access a comprehensive Pro Research Report on WCC, one of over 1,400 US equities covered with expert analysis and actionable intelligence. Wesco International distributes electrical, communications and utility products and provides supply chain management services.

In other recent news, Wesco International has completed its acquisition of Newark Engineering Group, a Singapore-based company specializing in engineered cooling solutions and lifecycle services for data centers. The acquisition, valued at approximately $136 million, expands Wesco’s capabilities in data center cooling and strengthens its presence in Southeast Asia. Newark Engineering generated around $60 million in revenue in 2025, highlighting the strategic value of this acquisition for Wesco.

Additionally, DA Davidson has initiated coverage on Wesco International with a buy rating and a price target of $440.00, reflecting confidence in the company’s future performance. In other developments, Wesco International announced a quarterly cash dividend of $0.50 per share, payable on June 30, 2026, to shareholders of record as of June 12, 2026. These recent developments underscore Wesco’s strategic growth initiatives and commitment to shareholder returns.