UPDATE: Morgan Stanley Raises PT to $78 on Stanley Black & Decker on Discounted Valuation

Morgan Stanley reiterated its Equal-weight rating on Stanley Black & Decker SWK and raised its price target from $77 to $78. Morgan Stanley noted, "While we are becoming attracted to SWK's discounted valuation of 10.6x NTM EPS following the 10% YTD decline, we forecast a $0.10 miss vs. consensus in 2Q12, and see downside to $5.75-6 2012e guidance. As such, we remain on the sidelines pending clarity on the 2H outlook." Stanley Black & Decker closed at $62.55 on Friday.