11:05 AM EDT, 07/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

In contrast to a majority of industrial machinery peers that have reported, tariffs proved to be a setback for SWK's margin ambitions in Q2. Gross margins underperformed amid tariff related inflation, at 27.5% vs. the consensus expectation for 28%+. Following Q2 results, we cut our 12-month target to $85 from $105, valuing shares at 14.8x our 2026 EPS outlook of $5.75 (down from $6.44; 2025 EPS adjusted to $4.88 from $4.50). While margin performance was disappointing, we see negative share price action being overdone and anticipate upside from current levels as SWK makes additional progress on debt reduction and supply chain pivots. SWK currently has an attractive dividend yield of ~5% - we note that dividends have been highlighted as a key priority of funding. We don't see dividends being at immediate risk of being cut, though a recession could change this. Overall, we believe that SWK's tariff related challenges are priced in, positioning shares to recover along with fundamentals.