Barrington Thinks Snap-on’s Stock is Going to Recover

By Carrie Williams

In a report released today, Gary Prestopino from Barrington maintained a Buy rating on Snap-on (NYSE: SNA). The company’s shares opened today at $146.80, close to its 52-week low of $140.83.

Prestopino wrote:

“We are estimating Q1/18 net sales of $949 million and EPS of $2.75. The First Call consensus estimates call for net sales and EPS of $928 million and $2.73, respectively. Management does not provide specific quarterly nor annual guidance for revenue or EPS. We believe Q1/18 will at least be within the range of expectations for both sales and EPS. We expect that the Tool Group will continue to exhibit sluggish top line growth on a year- over-year basis for Q1/18 due to tough comps related to tool storage products. We believe the quarter will be carried by the RS&I as well as C&I Groups that are benefiting from a strong eco system for auto repair and a resurgence of worldwide industrial growth. RS&I growth is being driven by diagnostic and repair information products to independent repair shops and OEM dealerships while C&I Group sales are being driven by sales gains in critical industries and the European hand tools business.”

According to, Prestopino is a 2-star analyst with an average return of 1.0% and a 45.8% success rate. Prestopino covers the Services sector, focusing on stocks such as Kar Auction Services Inc, Student Transportation, and Liquidity Services.

Currently, the analyst consensus on Snap-on is Strong Buy and the average price target is $196.50, representing a 33.9% upside.

In a report issued on April 11, Robert W. Baird also reiterated a Buy rating on the stock with a $204 price target.

The company has a one-year high of $185.47 and a one-year low of $140.83. Currently, Snap-on has an average volume of 722.2K.

Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. Most recently, in February 2018, Thomas Kassouf, the Sr VP & Pres – Tools of SNA sold 96,000 shares for a total of $15,398,245.

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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.