-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
Following SWK's Q1 results, we trim our 12-month target to $95 from $100, valuing shares at 15.5x our 2027 EPS outlook of $6.07 (down from $6.57; 2026 EPS forecast revised to $5.40 from $5.50), below peers and the company's five-year historical forward average, warranted by stubbornly soft consumer demand. Q1 surpassed expectations on both revenue and earnings, and was marked by the completion of the CAM divestiture. This move has helped to de-risk SWK's balance sheet, enabling a swift pivot from debt reduction to shareholder returns via a new $500M share repurchase program. Consumer facing demand continues to be restrained, though the professional channel proved encouraging, with the aerospace business seeing 31% Y/Y organic growth. We believe that SWK has now laid the groundwork for gross margins to reach back toward historical levels, even when taking into consideration current tariff policy. Share buybacks are a prudent use of capital given our view that shares trade below intrinsic value.