SWK Estimates Raised

Analysts at Raymond James reiterate their “strong buy” rating on The Stanley Works (NYSE: SWK), while raising their estimates for the company. The price target for SWK is set to $60.

Stanley Works is scheduled to report its results tomorrow. The Black & Decker deal is not expected to be completed before March/April. The analysts say, “We continue to believe that the $350m in guided cost synergies is low, and that pro forma combined 2012 EPS power exceeds $5.00. Given leading brands in nearly every category in which it competes, historical 20%+ returns on equity, and a generally diverse end market mix (on both a product and geographic basis), we believe the historical median forward P/E of 14x is at least fair.”

Raymond James has raised its EPS estimates for 2010 and 2011 have been raised from $3.12 to $3.20 and from $3.36 to $3.45, respectively.

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