STOCKS | JPMorgan Keeps Buy Rating On Techtronic, Sees Strong 2027 Momentum

JPMorgan said Techtronic Industries management still expects to meet full-year guidance despite market concerns over higher interest rates, rising shipping and commodity costs, macro volatility and a slowdown in some AI data center development, according to ETNet. The bank said the company’s consumer business has performed well after exiting lower-margin brands such as Hart and refocusing on core power tools and outdoor products. Management expects more innovation and consumer-led demand from 2027 onward. JPMorgan added that Milwaukee continues to post global success, supported by its exposure to data centers and critical infrastructure. The company’s cash flow remains strong, backing a disciplined capital-allocation strategy that includes ongoing buybacks and higher dividends, while free cash flow and EBIT both hit record highs. Although management has not issued formal 2027 guidance, JPMorgan said it is confident Milwaukee can deliver low-double-digit revenue growth and expects rising AI data center contributions to accelerate profit growth. It said management kept its 2027 EBIT margin target at 10%. The bank maintained its overweight rating and HK$179 target price, saying Techtronic remains one of its top picks in industrials and that the stock, up about 40% year to date, should continue to outperform into year-end.