8/17/2010
NEWS BRIEFS
Stanley Black & Decker Upgraded to ‘Outperform’
Zacks Equity Research upgraded its recommendation for Stanley Black & Decker from Neutral to Outperform.
“We believe Stanley Black & Decker embarks on a growth strategy of shifting its business portfolio toward favored growth markets through acquisitions and divestitures,” Zacks stated.
Zacks pointed to the company’s acquisition of ADT France in March, which secured the leading market share in France and expanded its security footprint in Europe.
Black & Decker Corp. was acquired at the same time, supporting the continued expansion of the company’s global business platform.
“Moreover, management appears to be quite optimistic about the expansion prospects of its five strategic growth platforms including Convergent Security, Mechanical Security, Engineered Fastening, Infrastructure and Healthcare.”
Stanley Black & Decker’s infrastructure platform is expected to grow roughly $1-$2 billion in over 5 to 7 years, focusing primarily on specialized tools, equipment and services for commissioning, repair and maintenance of infrastructure in areas such as oil and gas, transportation, water and sewer, and power systems.
Earnings per share estimates for 2010 and 2011 are expected to approach 30% growth to $4.61 by the end of next year.
Consolidated results of the company included full one quarter results of Black & Decker Corporation, which was acquired in the first quarter of 2010.
Net revenues in the second quarter 2010 increased 157.4% year over year to $2.4 billion, boosted by the addition of Black & Decker revenues, higher unit volumes owing to supply chain restocking and improving demand, and revenue contribution from other acquisitions. ©2010 GlobalFastenerNews.com
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