UPDATE: Credit Suisse Lowering Price Target On Stanley Black & Decker
Credit Suisse is out with a research report on Stanley Black & Decker. Inc. (NYSE: SWK) and it has an Outperform rating, and is lowering its price target to $80 from $85.
In a note to clients, Credit Suisse writes, "Niscayah acquisition helps to offset near-term weakening in construction-related end markets: We maintain our 11 estimates. We are lowering our '12 est. to $6.30 from $6.50 as we incorporate the pending Niscayah acquisition (a positive contribution of $0.20 to EPS in '12 ex-charges), offset by a ratcheting down of our core growth assumptions from weakening consumer and non-residential demand. We now expect approx. 5% sales growth in '12 ex-acquisitions, with ~3% of core growth and ~2% of revenue synergies. We are leaving our '11 est. at $5.21, ex. one-time charges, which we think may be at the low-middle end of guidance likely to be provided post the Niscayah closing (currently $5.15-$5.40). We are lowering our target price to $80 from $85, based on 13x our '12 est."
Shares of SWK closed at $57.58 yesterday.
