UBS Reaffirms Buy Rating on Stanley Black & Decker (SWK)

Stanley Black & Decker (NYSE:SWK) is one of the 15 best Industrial Machinery and Supplies stocks to buy according to Hedge Funds.

On January 5, Damian Karas from UBS reiterated his Buy rating on Stanley Black & Decker. The analyst lowered his price target estimate on the stock from $105 to $98. Despite the downward revision of the target price, Karas’ estimates still yield an impressive 24% upside potential.

On December 23, Timothy Wojs at Baird maintained a Hold rating on Stanley Black & Decker. However, the analyst raised his price target from $75 to $85 following the company’s announcement of the sale of its CAM business to Howmet Aerospace for $1.8 billion. This valuation was significantly higher compared to Baird’s projections between $1 billion and $1.5 billion, and also leads to around 18x forward EBITDA multiple for CAM. Wojs also highlighted management’s plans to use these proceeds to reduce leverage.

Stanley Black & Decker delivers storage and fastening equipment, including hand & power tools, outdoor equipment, and related accessories. The company offers products under brands such as DEWALT, HUSTLER, and CRAFTSMAN and is organized into the Industrial and Tools & Outdoor segments.

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This article is originally published at Insider Monkey.