Stanley Black & Decker faces intensifying competition and risks come first: BofA By Investing.com

By Christiana Sciaudone

Investing.com-Stanley Black & Decker (NYSE :) fell 4% as intensified competition prompted a downgrade.

According to StreetInsider and Bank of America (NYSE :) analyst Ross Gilardi, the stock price has been reduced from neutral to a sell-equivalent price and the price target has been reduced from $ 187 to $ 175.

Rival Techtronic is growing fast and Home Depot (NYSE :), and Stanley Black & Decker are facing fierce competition at Lowe’s (NYSE :) with cordless outdoor batteries from Chervon’s EGO.

According to StreetInsider, the possibility that SWK will buy the remaining 80% of MTD products this year or later next year is more risky than it looks.

“This business will require a reinvestment by Stanley to electrify the product line,” analysts said. The investors we’re talking about don’t even consider it. ”

Stocks have been trading at levels close to a year ago, after doubling at a rally that began in March.

According to data compiled by Investing.com, the stock has six buy valuations, three holds, and now Gilardi’s single sell.

Last month, JP Morgan (NYSE :) analyst Michael Rehaut raised the Stanley Black & Decker price target from $ 13 to $ 17, while maintaining a hold-equivalent rating, Street Insider reported.

Stanley Black & Decker has exceeded its quarterly profit estimates since 2013.