Stanley Black & Decker is cut at Deutsche Bank due to near-term risks

Deutsche Bank downgraded Stanley Black & Decker (NYSE:SWK)$Stanley Black & Decker(SWK)$to a Hold rating after having it slotted at Buy.

The firm flipped to a cautious stance after Stanley Black & Decker (SWK) dramatically lowered its full-year EPS guidance.

Analyst Nicole DeBlase think the current share price on SWK comes close to accurately pricing in a real trough EPS forecast.

DeBlase and team also note the the macroeconomic backdrop is likely to lead to slipping residential construction activity and pointed to recent market share losses for SWK to peers.

"We are concerned that share loss could continue in the years to come, and if not, SWK may need to step up its R&D/innovation-focused spend to combat this, which could weigh on profitability," she warned.

Deutsche Bank lowered its price target on SWK to $111 from $126.

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