Stanley Black & Decker, Inc.

SWK pitch long Arjun Bhattacherjee, Rory Ellison, Colin Kennedy

Thesis

We recommend a long position in Stanley Black & Decker stock with a target price of $107.00, representing a ~43% total upside from the current share price of $76.40. The company is undervalued compared to its peers and has significant activist potential to unlock value through a spin-off of its security segment and a merger with Ingersoll-Rand's security division. This strategy would enhance focus on core segments and drive organic growth initiatives.

Did it work?

failed confidence: high

The stock price has increased by 35.2% since the pitch, but this is significantly below the target price of $107.00, which would require a 43% increase from the initial price. Additionally, the thesis relied on specific strategic actions (spin-off and merger) that have not been realized, indicating that the anticipated value unlocking has not occurred.

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