Bank of America Securities has issued a research report stating that it recently met with the management of Techtronic Industries Co Ltd (HKEX: 00669) and conducted on-site visits in Boston, USA, communicating with contractors and utility organizations.

The report suggests that the company's Milwaukee brand has a promising growth outlook within the utility sector. The brand's professional tools are seen as enhancing worker productivity and safety, with customers generally willing to pay a premium for these benefits.

It is anticipated that Milwaukee's focus on expanding into complex, high-end, and DC-related product areas will support the company in achieving its 10% EBIT target.

Bank of America Securities has reaffirmed its "Buy" rating for Techtronic Industries and raised its target price from HK$118 to HK$141.6. This new target corresponds to a forecasted price-to-earnings ratio of 21 times for 2027.

The report notes that as Milwaukee's proportion within the group's product portfolio increases, a slight increase in the valuation multiple is considered reasonable.