Analyst Jonathan Matuszewski of Jefferies reiterated a Buy rating on Stanley Black & Decker, with a price target of $86.00.
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Jonathan Matuszewski has given his Buy rating due to a combination of factors that highlight Stanley Black & Decker’s strategic positioning and potential for growth. The company has recently made significant high-caliber hires, including a new Vice President of Global Quality and a Vice President of Engineering Excellence. These appointments are expected to bolster the company’s efforts towards achieving sustainable organic growth, as these executives bring extensive experience and expertise in their respective fields.
Furthermore, Stanley Black & Decker has been executing a comprehensive transformation plan since mid-2022, which is anticipated to reach substantial completion this year. This transformation is expected to position the company for sustainable growth, potentially allowing it to outperform the industry by a factor of two to three times over time. Additionally, the company’s progress in optimizing its capital structure suggests potential avenues for increased shareholder returns, such as the resumption of share buybacks. Trading at a discount compared to its peers, the company is projected to achieve over 20% total shareholder return, including dividend yield, in the coming year.