Wells Fargo analyst Michael McGinn downgraded MSC Industrial Direct to Underperform from Market Perform with a price target of $62, down from $65. Management is making the necessary steps to realign the company's salesforce, cut costs and invest organically, McGinn tells investors in a research note. However, the analyst expects these actions to take time and believes MSM's current margin headwinds "will bleed into" fiscal 2020. In addition, the confluence of tungsten deflation, weighted average inventory costing and a softening manufacturing environment "creates an unpromising scenario" for price-cost margin dynamics in the first half of 2020, which is not appreciated by the Street, McGinn contends.