Citi analyst Eric Lau has reiterated their bullish stance on SWK stock, giving a Buy rating today.
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Eric Lau has given his Buy rating due to a combination of factors that suggest a positive outlook for Stanley Black & Decker. Despite the company’s recent third-quarter results being somewhat soft, with GAAP EPS falling short of consensus expectations, the non-GAAP EPS aligned with forecasts, indicating resilience in their financial performance. The stock’s recent decline of 12% appears to be an overreaction, especially considering the company’s promising outlook for the fourth quarter of 2025 and into 2026.
Furthermore, the stock’s valuation is attractive, trading at 11 times the price-to-earnings ratio with a dividend yield exceeding 3% for the estimated 2026 period. This is supported by a projected three-year non-GAAP EPS compound annual growth rate of 16% through 2027. While there is a slight reduction in the 2025 full-year adjusted EPS guidance, management’s focus on gross margin expansion and cost reduction initiatives is expected to bolster profitability. These factors collectively underpin the Buy rating, although there is a preference for TTI due to its potential for stronger market share gains from 2026 onwards.
In another report released today, Barclays also maintained a Buy rating on the stock with a $89.00 price target.