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Analysts’ Views on Stanley Black & Decker ahead of 3Q17

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Analysts’ consensus on Stanley Black & Decker

As of October 18, 2017, Stanley Black & Decker (SWK) is being tracked by 22 analysts compared to 21 the previous month. About 59.0% of them have recommended a “buy” for the stock, and 41.0% have recommended a “hold.” None of them have recommended a “sell.”

Analysts’ consensus indicates SWK’s 12-month target price of $165.81, which implies a return potential of 5.7% from the closing price of $156.85 on October 18, 2017. Analysts’ consensus target price has been on an upward trend since July, from $155.30 to its current target price.

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Analysts are betting on ‘buy’ or ‘hold’

SWK has posted two quarters of good earnings. In 2Q17, it made an upward revision to its adjusted EPS (earnings per share) for fiscal 2017, which is now expected to be $7.18–$7.38 against the earlier guidance of $7.08–$7.28. The acquisitions of Newell Brands and Craftsman from Sears Holdings (SHLD) are expected to drive SWK’s future growth. That could explain why analysts are recommending either a “hold” or a “buy” for SWK.

Individual brokerage recommendations

  • Morgan Stanley (MS) is rating SWK “overweight” and recommending a target price of $169, which implies a return potential of ~7.8% from its closing price of $156.85 on October 18, 2017.
  • KeyBanc has recommended a target price of $185 for SWK, implying a return potential of 17.9% from its closing price of $156.85 on October 18, 2017.
  • Seaport Global Securities has rated SWK a “buy” with a target price of $160, implying a return potential of 2.0% from its closing price on October 18, 2017.

Investors can indirectly hold SWK by investing in the Guggenheim S&P 500 Equal Weight Industrials ETF (RGI), which has invested 1.5% of its portfolio in SWK. The other holdings of the fund include Caterpillar (CAT) and Deere (DE) with weights of 1.5% each as of October 18, 2017.

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