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UPDATE: Deutsche Bank Downgrades Stanley Black & Decker (SWK) to Hold

August 16, 2022 4:18 PM EDT
Get Alerts SWK Hot Sheet
Price: $79.03 +5.08%

Rating Summary:
    16 Buy, 14 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 6 | Down: 13 | New: 11
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(Updated - August 16, 2022 4:19 PM EDT)

Deutsche Bank analyst Nicole DeBlase downgraded Stanley Black & Decker (NYSE: SWK) from Buy to Hold with a price target of $111.00 (from $126.00).

The analyst comments "We fully admit that this is far from the ideal time to downgrade SWK, after the stock has underperformed our coverage universe significantly, both YTD (-46% vs. -13% group median) and in 2021 (+6% vs. +21% group median). This comes after a series of guidance cuts caused first by rampant inflation, and now by evidently weakening consumer demand. A 'cheap' valuation has generally kept us from downgrading the stock up to this point, but following the big cut to 2022e adj. EPS guidance, the stock's NTM P/E multiple has shot up to 22x, representing a 17% premium to the MI/EE group median. And while it is not fair to compare SWK's valuation to peers given vast differences in cyclical dynamics (consumer vs. industrial), we do think that the current share price comes close to accurately pricing in a real trough EPS forecast."

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 $101.54 yesterday.


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