Stanley Black & Decker Downgraded to “Hold” at KeyBanc (SWK)

Toolmaker Stanley Black & Decker, Inc. ( SWK ) on Monday saw its shares downgraded by analysts at Keybanc. The firm said it cut its rating on SWK from “Buy” to “Hold,” citing the stock’s fair valuation. A KeyBanc analyst commented, “With Stanley’s success in 2010 and robust sales guidance of 5-6% organic growth in 2011, we see little upside near-term given its valuation at roughly 15x our $4.96 estimate ($4.75-$5.00 guidance), supporting our downgrade to HOLD. We raised our 2011 from $4.55 to $4.96 and expect free cash flow of $1.1 billion in 2011 (9% yield) to solidify investors’ confidence in management’s ability to execute further cost savings and or accretive acquisitions into the 2H, offering the stock momentum in time.” Stanley Black & Decker shares fell 72 cents, or -1%, in premarket trading Monday. The Bottom Line Shares of Stanley Black & Decker ( SWK ) have a 1.87% dividend yield, based on Friday’s closing stock price of $72.72. The stock has technical support in the $65 price area. The shares are trading at all-time highs and have little overhead resistance. Stanley Black & Decker, Inc. ( SWK ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

Stanley Black & Decker Downgraded to “Hold” at KeyBanc (SWK)

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