Wunderlich Securities Sees Mixed Factors For Stanley Black & Decker Ahead Of 3Q Results

In a report published Thursday, Wunderlich Securities analyst Liam D. Burke reiterated a Buy rating and $108.00 price target on Stanley Black & Decker (NYSE: SWK).

In the report, Wunderlich Securities noted, “We are maintaining our Buy rating on Stanley Black & Decker, Inc. (SWK) with a $108 price target. Continued weakness in the European security business (Niscayah) has prevented Stanley from meeting its long-term operating goals and has offset the strength in Stanley's other lines of business. Overlooked assets that are driving higher operating margins, free cash flow generation, and returns on invested capital are the industrial businesses and North American security business. The sale of the Hardware & Home Improvement Group (HHI), which produced a more commoditized product line and the reallocation of cash toward adding higher return businesses and returning cash to shareholders, are good examples of the company's value-creating initiatives.”

Stanley Black & Decker closed on Wednesday at $81.31.