Wunderlich Securities Sees Solid Business Environment For Snap-on

In a report published Friday, Wunderlich Securities analyst Liam D. Burke reiterated a Buy rating and $140.00 price target on Snap-on Incorporated (NYSE: SNA).

In the report, Wunderlich Securities noted, “Snap-on has a stated 4% to 6% annual year-over-year revenue growth target despite a product offering that is guaranteed for life. Snap-on has articulated four broad categories that will drive top-line growth including enhancing the van channel, growing critical industries, increasing sales in emerging markets, and selling more product to the shop manager and owner. Our quarterly Snap-on franchisee interviews reflect a solid business environment. Although it is not the fastest growing part of its business, it provides a consistent base of profit and cash flow. The responses in general see the competitive environment is benign. In addition, new products, particularly higher margin diagnostics, are selling well and in general business has increased year-over-year.”

Snap-on Incorporated closed on Thursday at $117.80.