J.P. Morgan Raises PT on Stanley Black & Decker to $78 (SWK)

J.P. Morgan is out with its report on Stanley Black & Decker SWK, raising its price target from $72 to $78, In a note to clients, J.P. Morgan writes, "Given SWK's 2011 guidance of $4.75-5.00, which is largely driven by higher expected BDK cost synergies which we view as achievable, we raise our 2011E and 2012E from $4.65 and $5.65 to $4.90 and $6.00, respectively. Moreover, we raise our Dec. 2011 price target to $78.00, based on a 13x forward multiple against our 2012E; our previous price target of $72.00 was based on discounting our prior 2012 EPS and EBITDA estimates, using a 10% rate. Lastly, we maintain our Neutral rating, as we note valuation, at 14.8x our 2011E, while not expensive, is not compelling either, in our view, and we take a more cautious approach to SWK's revenue synergy guidance at this time." Shares of SWK closed Thursday at $72.62, up 8.47% from Wednesday's close.