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Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Stanley Black & Decker (NYSE:SWK), according to a research note released Thursday.
The firm has raised its estimates for the power tool manufacturer, citing a "generally more favorable tariff policy" compared to April. Raymond James noted that the company’s valuation based on these new estimates is "towards the lower end of the historical range."
Despite the improved tariff outlook, the research firm highlighted that demand for Stanley Black & Decker’s products "remains soft" in the current market environment.
Raymond James also expressed concern about "ongoing trade negotiations" that could potentially result in tariffs putting Stanley at a "further competitive disadvantage" compared to rival Techtronic Industries (OTC:TTNDY).
The firm pointed out that these potential tariff issues could worsen existing challenges for Stanley Black & Decker, including "years of lower relative R&D and sales support spending" compared to competitors, along with "significant balance sheet leverage at 4x trailing EBITDA."
In other recent news, Stanley Black & Decker reported its Q1 2025 earnings, revealing an earnings per share (EPS) of $0.75, which surpassed analyst expectations of $0.66. The company’s revenue was $3.7 billion, slightly below the anticipated $3.71 billion. UBS analyst Damian Karas revised the price target for Stanley Black & Decker, reducing it to $100 from $120, while maintaining a Buy rating, citing potential benefits from recent US-China trade developments. Barclays (LON:BARC) analyst Julian Mitchell upgraded the stock from Equal Weight to Overweight, raising the price target to $90 from $69, with improved earnings per share estimates due to eased trade tensions. Additionally, Stanley Black & Decker announced Christopher Nelson as the next President and CEO, effective October 1, 2025, as part of a planned leadership transition. Despite the reduced price target, UBS maintains a positive outlook on the company’s future, highlighting expected cost savings and margin improvements. Barclays also noted the company’s improved financial projections, driven by anticipated organic sales growth and adjusted operating margin expansion. These developments reflect ongoing strategic adjustments and positive analyst sentiment towards Stanley Black & Decker’s long-term growth prospects.
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