Goldman Sachs Raises Stanley Black & Decker (SWK) PT to $84 After Margin-Driven Q4 Beat

Stanley Black & Decker, Inc. (NYSE:SWK) is included among the 13 Cheapest Dividend Aristocrats to Invest in.

On February 6, Goldman Sachs analyst Joe Ritchie raised his price recommendation on Stanley Black & Decker, Inc. (NYSE:SWK) to $84 from $78. The analyst reiterated a Neutral rating on the stock. In a research note, he said the company’s Q4 beat was driven largely by stronger margins in the Tools & Outdoor segment. Even in a difficult market, the company is focusing on what it can control. That includes pricing, tariff mitigation, cost actions, and working-capital discipline to protect margins and cash flow.

A few days earlier, on February 4, the company projected 2026 profit below Wall Street estimates. Tariff-driven price increases have started to weigh on demand for its power tools. Tariffs introduced under US President Donald Trump, along with inflation, have added pressure for companies already dealing with high raw material costs.

Management said efforts to offset tariffs, including higher pricing, led to weaker sales in North America and other developed markets within the Tools & Outdoor segment. Over the past year, the company rolled out several cost-saving measures. It adjusted its supply chain to soften the tariff impact. The cost reduction program delivered about $120 million in savings in the fourth quarter alone.

Net sales in the Tools & Outdoor segment, which includes power tools and lawn and garden equipment, fell 2% to about $3.16 billion. Adjusted earnings for the quarter declined to $1.41 per share from $1.49 a year earlier. Total fourth-quarter net sales edged down to $3.68 billion from $3.72 billion. Looking ahead, the company expects 2026 adjusted EPS between $4.90 and $5.70. The midpoint sits below analysts’ estimates of $5.66 per share, according to data compiled by LSEG.

Stanley Black & Decker, Inc. (NYSE:SWK) operates globally. It supplies hand tools, power tools, outdoor products, related accessories, and engineered fastening solutions through its Tools & Outdoor and Engineered Fastening segments.

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