UBS Maintains a 'Buy' on Stanley Black & Decker (SWK); Raising PT on Favorable Outlook
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Price: $99.59 -2.43%
Rating Summary:
16 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
16 Buy, 14 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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UBS maintains a 'Buy' on Stanley Black & Decker (NYSE: SWK) price target raised from $77 to $89.
UBS analyst says, "We have examined SWK’s valuation, both current and historical, and believe our prior price target methodology was too conservative. Our new target reflects 1) higher overall multiples due to broad-market gains, and 2) a mid-cycle multiple that reflects ongoing (albeit, moderate) improvement in underlying end market conditions. While we are not changing our already above consensus estimates at this point, management’s recent commentary at industry conferences, and the recent up-tick in housing activity, suggests that SWK has a favorable upside/downside fundamental outlook."
"Our FY12 EPS est of $6.10 is above guidance ($5.80-$6.00) & cons. of $5.87, mostly driven by cost savings from B&D and Niscayah. SWK expects $1.2B in adj. FY12 FCF (~$7.20/sh), and we think the ~9% FCF yield is too conservative given consistent execution, upside bias to fundamentals, and shareholder friendly capital allocation."
For an analyst ratings summary and ratings history on Stanley Black & Decker click here. For more ratings news on Stanley Black & Decker click here.
Shares of Stanley Black & Decker closed at $81.34 yesterday.
UBS analyst says, "We have examined SWK’s valuation, both current and historical, and believe our prior price target methodology was too conservative. Our new target reflects 1) higher overall multiples due to broad-market gains, and 2) a mid-cycle multiple that reflects ongoing (albeit, moderate) improvement in underlying end market conditions. While we are not changing our already above consensus estimates at this point, management’s recent commentary at industry conferences, and the recent up-tick in housing activity, suggests that SWK has a favorable upside/downside fundamental outlook."
"Our FY12 EPS est of $6.10 is above guidance ($5.80-$6.00) & cons. of $5.87, mostly driven by cost savings from B&D and Niscayah. SWK expects $1.2B in adj. FY12 FCF (~$7.20/sh), and we think the ~9% FCF yield is too conservative given consistent execution, upside bias to fundamentals, and shareholder friendly capital allocation."
For an analyst ratings summary and ratings history on Stanley Black & Decker click here. For more ratings news on Stanley Black & Decker click here.
Shares of Stanley Black & Decker closed at $81.34 yesterday.
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