Goldman Sachs upgraded Black & Decker (BDK) to market outperform from market perform.
Analyst Christopher Winham says the upgrade is based on an industry-low valuation of 10.7 times B&D's depressed 2001 EPS estimate. He cut the $3.65 2001 EPS estimate to $3.45, and lowered the $4.20 2002 estimate to $3.90 on a more delayed economic recovery.
Strong housing markets, improving consumer confidence and aggressive new product launches from B&D gives some optimism for second-half 2001 results. He says the risks are adequately reflected in the stock's current valuation, and believes shares offer a 20% upside. Winham has a $45 target.