Mizuho Securities analyst Brett Linzey has maintained their bullish stance on SWK stock, giving a Buy rating on February 19.
Brett Linzey has given his Buy rating due to a combination of factors that suggest a positive outlook for Stanley Black & Decker. One of the primary reasons is the improvement in contractor sentiment and remodeling activity, which is expected to benefit the company. Additionally, the reduced impact of China tariffs, now at 10% instead of the anticipated 60%, has positively influenced the valuation setup, making the stock more attractive.
Brett Linzey’s valuation framework remains robust, utilizing a blended price-to-earnings and EBITDA approach to forecast future performance. The current valuation is considered appealing at the existing multiple, with a conservative approach to account for potential tariff risks. By applying a discount to the building products/tool average peer multiple, Linzey arrives at a target price of $110, reaffirming the stock as a top pick in the electrical equipment and multi-industry sector.
According to TipRanks, Linzey is a 5-star analyst with an average return of 11.8% and a 71.07% success rate. Linzey covers the Industrials sector, focusing on stocks such as Stanley Black & Decker, 3M, and Parker Hannifin.
In another report released on February 19, Jefferies also initiated coverage with a Buy rating on the stock with a $103.00 price target.