Goldman Sachs Raises TECHTRONIC IND (00669) Target Price to HK$111.3, Maintains "Buy" Rating

Stock News11-20

Goldman Sachs released a research report projecting TECHTRONIC IND's (00669) 2026 revenue to grow 7% year-on-year, with its professional tools segment (Milwaukee) returning to 10% growth in the second half after a one-time adjustment. The consumer tools segment (Ryobi) is expected to recover moderately following U.S. interest rate cuts. The bank forecasts a 0.1 percentage point expansion in gross margin and a 0.1 percentage point decline in SG&A expenses. Goldman Sachs raised its target price from HK$110.1 to HK$111.3, maintaining a "Buy" rating.

The report noted that TECHTRONIC IND's point-of-sale (POS) performance remains resilient, though overall revenue growth is expected to slow in the second half due to Milwaukee's proactive adjustments in shipments from China to the U.S. Full-year revenue growth is maintained at 5%, with H2 growth projected at 3% compared to 7% in H1.

TECHTRONIC IND has adopted a more cautious pricing strategy than Stanley Black & Decker, relying on production relocation rather than broad price hikes to offset tariff impacts. As a result, Goldman Sachs expects stable gross margins in the second half.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment