UPDATE: Wunderlich Initiates Coverage on Snap-on Incorporated on Consistent Revenue Growth With Higher Margins

In a report published Thursday, Wunderlich Securities analyst Liam D. Burke initiated coverage on Snap-on (NYSE: SNA) with a Buy rating and $140.00 price target.In the report, Wunderlich Securities noted, “We are initiating coverage of Snap-on Incorporated (SNA) with a Buy rating and $140 price target. Snap-on operates an industrial and tools business with high barriers to entry and geographic diversification that results in sustainable fundamentals. The valuation for the core business should be more in line with a high-quality industrial company. With Snap-on's long history of lean culture, operating margins should continue to improve on low- to mid-single digit sales growth. With Snap-on's finance business fully consolidated, contract and finance receivables should grow more in line with revenue growth, and free cash flow should increase at a faster rate than earnings.”Snap-on closed on Wednesday at $120.11.