Benzinga | Sep 17, 2021 12:03PM EDT

BofA Downgrades Snap-On To Underperform Citing Spending Pullback Risk

* BofA analyst Elizabeth Suzuki downgraded Snap-On Inc (NYSE:SNA) to Underperform from Neutral with an unchanged price target of $240, implying an upside of 12.49%.

* Suzuki sees several tailwinds in the next 12 months, given her expectations for a recovery in the professional auto service channel.

* She says auto dealers will temporarily pull back on high-end tools and equipment investments as they experience near-term pressure on new vehicle sales due to supply shortages.

* The analyst expects Snap-On shares to underperform other stocks in her coverage, where she thinks the valuation appears more attractive.

* Price Action: SNA shares are trading lower by 2.6% at $213.61 on the last check Friday.