Shares of New Britain-based Stanley Works fell today as an analyst downgraded the toolmaker, citing tight credit and a potential severe recession.
Nigel Coe of Deutsche Bank-North America said in a note to investors that he lowered Stanley Works to “sell” from “hold.”
At noon, Stanley shares fell 13 cents, or 0.4 percent, to $31.15.
Coe also cut his target price to $27, which he said reflects above-average balance sheet leverage and high exposure to nonresidential construction and European industrial markets.
“In this sense, we believe investors will continue to discount stocks to well below underlying franchise value until there is more certainty on the near-term outlook,” he wrote.
Last week, the company reported an 80 percent increase, to $164.5 million, or $2.06 per share, in third-quarter profit. Sales edged higher to $1.12 billion from $1.11 billion, helped by acquisitions, currency benefits, and 7 percent higher sales in its security segment. (AP)
