Breaking Stories

Credit Suisse downgrades Stanley Black & Decker as home improvement spending slows into 2023

A slowdown in home improvement spending could spell trouble for Stanley Black & Decker heading into 2023, Credit Suisse says. “Our lower estimates reflect our expectation of a sharp slowing of housing turnover and a reduction in home improvement spending in 2023 based on this lower turnover,” wrote analyst Dan Oppenheim in a note to clients Friday as he downgraded the stock to neutral. Elevated mortgage rates, slowing international markets and a potential recession hitting consumer spending also pose risks to the power tools company going forward, he said. “Upside risks would come from a significant decline in mortgage rates that would boost turnover and help home prices and homeowner psychology,” he wrote. Despite these concerns, Oppenheim said the company’s $2 billion effort to cut costs should help offset some of this slowdown. Along with the downgrade, Credit Suisse cut EBITDA estimates and slashed its price target on the stock to $79 from $125 a share, suggesting a modest 2.6% gain for the stock in the near term. Shares are currently off by 59% in 2022. — CNBC’s Michael Bloom contributed reporting

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *