Stanley Black & Decker Gets Downgraded, 19% Price Target Cut On Uncertain Demand Trends

Wells Fargo analyst Joseph O'Dea downgraded Stanley Black & Decker, Inc. SWK to Equal-Weight from Overweight and lowered the price target to $105 (an upside of 8%) from $130.
The analyst states that a dramatic swing in Tools & Outdoor demand trends during Q2 resulted in a nearly 50% adjusted EPS mid-point cut. Management responded with significant cost-out plans.
Related: Stanley Black & Decker Shares Plunge On Q2 Miss, FY22 Guidance Cut
He added that stable demand from here and execution on cost out sets up good 2023 earnings power. However, he says that it's too early, in his opinion, to call for stable demand trends.
O'Dea is concerned that the Pro customer segment could be next to soften. There's also the risk of pricing pressure on weaker demand as well as execution risk against cost plans, he noted.
Price Action: SWK shares are trading lower by 0.20% at $97.14 on the last check Monday.

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