Stanley Black & Decker (SWK) has received a new Buy rating, initiated by Jefferies analyst, Jonathan Matuszewski.
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Jonathan Matuszewski has given his Buy rating due to a combination of factors including Stanley Black & Decker’s strategic transformation and market positioning. The company has undergone a significant transformation since mid-2022, which is expected to substantially culminate by 2025, reducing execution risks. This transformation includes inventory and debt reduction, divestitures, and an agile organizational structure, positioning the company for future growth.
Additionally, Matuszewski highlights the favorable market conditions benefiting Stanley Black & Decker. The aging housing stock in the U.S. is expected to drive increased spending on residential repairs and renovations, boosting demand for power tools, where the company is well-positioned. The momentum of DEWALT, along with stabilization in the CRAFTSMAN and STANLEY brands, further supports the growth outlook. The report also notes that Stanley Black & Decker is trading at a discount compared to its peers, despite expected superior growth in EBITDA and earnings per share, suggesting a potential for valuation expansion as the company’s narrative shifts towards organic growth.
Matuszewski covers the Consumer Cyclical sector, focusing on stocks such as Best Buy Co, Lowe’s, and Williams-Sonoma. According to TipRanks, Matuszewski has an average return of 6.1% and a 52.91% success rate on recommended stocks.
In another report released on February 6, Citi also maintained a Buy rating on the stock with a $118.00 price target.