Roth/MKM maintains Snap-on stock Buy rating, $393 target

Published 15/04/2025, 08:46
Roth/MKM maintains Snap-on stock Buy rating, $393 target

On Tuesday, Roth/MKM analysts maintained their positive stance on Snap-on Incorporated (NYSE: NYSE:SNA), reiterating a Buy rating and a price target of $393.00. According to InvestingPro data, the company maintains a "GREAT" financial health score and currently trades slightly above its Fair Value, with shares up 8.9% in the past week. The analysts noted that although the exact timing for a sustained positive performance in Snap-on’s Tools segment remains uncertain, there were signs of the company nearing that objective in the first quarter, before a recent drop in consumer confidence.

The firm highlighted that Snap-on is approaching a period of easier year-over-year comparisons, given a 7.0% decline in the same quarter of the previous year, and has shifted towards offering more affordable tools and equipment. The analysts also mentioned Snap-on’s relative insulation from tariff impacts compared to other companies within their coverage. The company’s strong financial position is evident in its impressive 52% gross profit margin and 15-year track record of consecutive dividend increases, as revealed by InvestingPro analysis.

Despite observing softer trends in the Do-It-Yourself market, the analysts believe the fundamentals of the automotive aftermarket are robust. They pointed to the continued recovery of miles driven on U.S. roads, surpassing pre-pandemic levels, and the growth of the U.S. car parc. Particularly beneficial for Snap-on is the recovery in the industry’s sweet spot of vehicles aged between 6 and 13 years old.

The most recent data from January 2025 indicates a 2.0% increase in miles driven compared to the year prior, which is also 1.0% above the pre-pandemic figures from January 2019. This trend supports the analysts’ optimism about the automotive aftermarket’s fundamentals, which could positively influence Snap-on’s performance.

Investors and industry watchers are now looking forward to Snap-on’s upcoming Q1 earnings release, scheduled for Thursday, April 17, 2025, to see if the company’s performance aligns with Roth/MKM’s expectations. With a market capitalization of $17.7 billion and analysts forecasting continued profitability, subscribers to InvestingPro can access 8 additional exclusive insights and a comprehensive Pro Research Report that provides deep-dive analysis of Snap-on’s financial health and growth prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.