NewsBlack Decker initiated with "sell"
05/22/07 - Banc of America
NEW YORK, May 22 (newratings.com) - Analysts at Banc of America Securities initiate coverage of Black Decker Corp (BDK) with a "sell" rating. The target price is set to $85.
In a research note published this morning, the analysts mention that the company is facing several challenges on account of a decline in consumer spending and deteriorating construction environment. Black & Decker is expected to witness challenges in rolling out its lithium ion cordless tools going forward, since contractors might not pay a premium during a downturn, the analysts say. The company’s operating margins are expected to decline by 140bps in 2007 and by 20bps in 2008 on account of commodity inflation and the absence of pricing power advantages, Banc of America Securities adds.