© Reuters.

By Christiana Sciaudone

Investing.com —  Stanley Black & Decker (NYSE:) dropped 4% as intensifying competition prompted a downgrade.

The stock was lowered to a sell-equivalent from neutral with a price target lowered to $175 from $187 by Bank of America (NYSE:) analyst Ross Gilardi, according to StreetInsider.

Rival Techtronic is growing faster and fortifying its position at the Home Depot (NYSE:), and Stanley Black & Decker is facing heavier competition at Lowe’s (NYSE:) in outdoor battery cordless from Chervon’s EGO.

SWK’s likely intent to buy out the remaining 80% of MTD Products later this year or next is riskier than it appears, Gilardi wrote, according to StreetInsider.

“The business would require reinvestment by Stanley to electrify the product line,” the analysts wrote “In the meantime, states like CA are considering bans on gas powered tools for environmental reasons. This is a risk to the potential $1 of EPS accretion that most investors we speak to are not even considering.” 

Shares are trading close to where they were a year ago, after doubling in a rally that began in March.

The stock has six buy ratings, three holds, and now Gilardi’s single sell, according to data compiled by Investing.com.

Last month, JPMorgan (NYSE:) analyst Michael Rehaut raised the price target on Stanley Black & Decker to $17 from $13, while maintaining a hold-equivalent rating, StreetInsider reported. 

Stanley Black & Decker beat or met profit estimates every quarter since 2013.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *