The manufacturer of industrial tools and household hardware, Stanley Black & Decker (NYSE:SWK), is marching ahead with its transformation plan announced in 2022. The company said it is changing its manufacturing and distribution networks to optimize its footprints, consolidate sites, and drive cost savings.
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The company announced that it would transfer its South Carolina operations to its facilities in Tennessee. Further, the company will discontinue its operations in Texas. The move will impact 175 employees at its Texas facility and about 182 employees in South Carolina. Meanwhile, it will add 80 jobs at its facilities in Tennessee.
SWK said the latest move aligns with its transformation strategy of delivering $2 billion in cost savings and driving operational efficiency. Further, it will strengthen SWK’s core business, drive financial performance, and support sustainable future growth.
While SWK focuses on enhancing efficiency, let’s check what TipRanks’ data indicates about its stock.
What’s the Prediction for SWK Stock?
The expectations of a demand slowdown due to heightened macro pressures and supply-chain headwinds continue to pose challenges for SWK stock. Given the near-term concerns, analysts remain sidelined on SWK stock.
It has received one Buy and five Hold recommendations for a Hold consensus rating. Furthermore, analysts’ average price target of $96.50 implies 22.71% upside potential. Overall, SWK stock has a Neutral Smart Score of seven on TipRanks.
