Wolfe Research analyst Nigel Coe downgraded Stanley Black & Decker to Underperform from Peer Perform with a $94 price target. If the company management can execute on its $2B cost plan, there is a path to over $7 of earnings per share in 2025, the analyst tells investors in a research note. However, “this has to be viewed as a bull case scenario,” says the firm. Wolfe’s downgrade is largely a valuation call. The stock has been “keying off optimism that the new housing market has bottomed,” but there are potential margin risks entering fiscal 2024 and Stanley’s balance sheet leverage is expected to remain elevated, says the firm.
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