Snap-on (SNA) Receives a Buy from Oppenheimer


Oppenheimer analyst Christopher Glynn maintained a Buy rating on Snap-on (SNA) yesterday and set a price target of $190. The company’s shares closed yesterday at $164.47.

Glynn commented:

“We are highlighting shares of SNA as a current priority pick, noting expectations likely remain muted while financial characteristics screen compelling. P/ E (14x ’18E), we observe ~50% gross margin levels (50.7% YTD through 3Q; up 50 bps y-o-y), low leverage (1.0x debt/EBITDA), and recent 16% dividend increase to $3.80 annualized (fifth year in a row of over 15% dividend increase; now 2.3% yield at just 32% payout ratio on ’18E EPS). Gross margins speak to immaterial net impacts of inflation and tariffs, while many/most companies incur moderate GM pressure currently, and we favor low leverage ratios during periods of equity market shakeouts and volatility.”

According to TipRanks.com, Glynn is a 5-star analyst with an average return of 7.7% and a 58.8% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Honeywell International, and Roper Technologies.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for Snap-on with a $192.07 average price target.

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Based on Snap-on’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $163 million. In comparison, last year the company had a net profit of $133 million.

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Snap-On, Inc. engages in the manufacture and marketing of tools, equipment, diagnostics, repair information, and systems solutions for professional users performing critical tasks. It operates through following segments: Commercial and Industrial Group; Snap-On Tools Group; Repair Systems and Information Group; and Financial Services.

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