Zacks Investment Research upgraded shares of Stanley Black & Decker Inc (SWK) from UNDERPERFORM to NEUTRAL on March 21, 2013, with a target price of $86.00.
We find the long-term growth prospects of Stanley Black & Decker quite compelling. The company's acquisition strategy over time has been quite advantageous for it. Of many, acquisition of Black & Decker, Niscayah and Infastech deserve special mention. In addition to acquisitions, disposal of non-core assets, the most recent being the HHI assets, has been a favoured strategy of Stanley for boosting long-term growth. Further, by increasing its exposure to emerging markets, the company is preparing itself to leverage benefits from the expected growth in tool and security industry in those regions. However, near-term concerns surrounding the stock cannot be ignored altogether. Management's outlook for 2013 takes into account a weak security and industrial markets in U.S, difficult operating conditions in Europe, and headwinds from higher interest and tax rates. Considering all these factors, our upgradation of the stock from Underperform has been restricted to a Neutral recommendation.
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