[ET Net News Agency, 24 June 2020] Citi Research raised its target price for Techtronic
Industries (TTI)(00669) to HK$90 from HK$75 and maintained its "buy" rating.
The research house said SWK (Stanley Black & Decker), the direct competitor of TTI,
management suggested 2Q sales to decline by 15-20% against prior guidance of a 35-45% fall
as stated in April. Hence, Citi believes SWK will raise FY2020 revenue guidance during 2Q
results due at end-July versus 15-30% down. This implies the economic resumption in the
US/EU to significantly improve demand for SWK power tools during 2Q.
Citi expects TTI to follow the same trend, in particular for Milwaukee (professional
tools), as SWK skews toward the professional segment. Citi raised its EPS estimates by
3%-5%. (KL)