Barrington analyst Gary Prestopino maintained a Buy rating on Snap-on (SNA – Research Report) today and set a price target of $350.00.
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Gary Prestopino has given his Buy rating due to a combination of factors that highlight Snap-on’s potential for solid performance. The company’s financial results for the fourth quarter of 2024 showed a slight increase in net sales, marking the first sales growth for the year. This growth was largely driven by the strong performances in the Commercial and Industrial (C&I) and Repair Systems and Information (RS&I) segments, with C&I experiencing a notable 4.2% sales increase and RS&I seeing a 1.3% rise.
Despite a minor decline in the Tools Group, the overall improvements in operating margins and earnings in key segments contribute to a positive outlook. The consolidated gross margin expanded by 140 basis points, and operating income saw significant year-over-year growth in both the C&I and RS&I segments. These factors, combined with Snap-on’s strategic pivot to align with technology preferences, suggest that the company is well-positioned to enhance its financial performance, justifying the Buy rating.
Prestopino covers the Consumer Cyclical sector, focusing on stocks such as Liquidity Services, Cars, and ACV Auctions. According to TipRanks, Prestopino has an average return of 23.9% and a 59.34% success rate on recommended stocks.
In another report released on February 7, Roth MKM also reiterated a Buy rating on the stock with a $393.00 price target.