Stanley shares rise as analyst upgrades stock

PITTSBURGH - Shares of The Stanley Works Co. rose Friday as an analyst upgraded the tool maker's shares to "Hold," saying the company has navigated the U.S. construction market downturn better than its peers.

Stanley Works stock climbed $1.41, or 4.4 percent, to $33.52 in afternoon trading.

Deutsche Bank analyst Nigel Coe wrote in a note to investors that his firm thinks Stanley Works should be viewed more as a diversified industrial company rather than a building products firm.

That's because of Stanley Works' lower reliance on the construction and do-it-yourself markets and greater exposure to industrial tool markets and an increasing mix of stable earnings from its security segment.

The analyst also raised his price target for the company to $38.

"Following (year-to-date) under-performance, (Stanley Works) is now trading at a slight discount to the Diversified Industrials, we believe that risk/reward is looking more evenly balanced," he wrote.

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