Bank of America Securities: Upgrading Chuangke Industrial's (00669) target price to HK$141.6, optimistic about the development of the Milwaukee brand

The Zhitong Finance App learned that Bank of America Securities released a research report saying that it recently met with the management of Chuangke Industrial (00669) and conducted a field visit in Boston, USA, to communicate with contractors and utilities. It is believed that the Group's Milwaukee brand has good growth prospects in the utility sector. The brand's professional tools can improve workers' productivity and safety, and customers are generally willing to pay a premium for this. It is expected that Milwaukee will focus on expanding complex, high-end, and DC-related product fields to support the company's 10% EBIT target. Bank of America Securities reiterated its “buy” rating for Chuangke Industrial. The target price was raised from HK$118 to HK$141.6, corresponding to the projected price-earnings ratio of 21 times in 2027, pointing out that Milwaukee's share of the Group's product portfolio has increased, and it is reasonable to slightly increase the valuation ratio.