WESCO International, Inc. (NYSE:WCC) reported its Q4 results, which came ahead of the Street estimates, driven by upside sales and margin strength. Q4 EPS came in at $3.17, compared to the consensus estimate of $2.52. Revenue was $4.9 billion, above the consensus estimate of $4.66 billion.

Analysts at RBC Capital believe the bull case in the company continues to track well, paced by the impressive beat, upside 2022 guidance, and another round of boosts to the revenue and cost synergy targets in the successful Anixter integration.

According to the analysts, deleveraging continues to be ahead of plan, and at 3.9x, the company is now below the psychological 4x threshold, on its way to its targeted 2.0x-3.5x in the second half of the year.

The sector trends continue to be in the company’s favor, including electrification, automation/IoT, grid modernization, and 24/7 connectivity. The analysts see ample upside from here, with valuation compellingly below its historical relative P/E support level. They raised the price target on the company’s shares to $163 from $158, while reiterating their outperform rating.