Barclays Maintains an 'Equalweight' on ITT Corp. (ITT); Updating View Post Break-up
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Price: $30.75 +2.36%
Rating Summary:
5 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
5 Buy, 9 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade ITT Now!
Barclays maintains an 'Equalweight' on ITT Corp. (NYSE: ITT) price target cut from $46 to $21.
Barclays analyst says, "We are continuing coverage of ITT following the spin-off of the water and defense businesses. We maintain our EW rating and see sector average growth with limited near-term catalysts and churn related to the recent separation. ITT's later cycle operating leverage and cash deployment could prove better than we forecast and drive us to a more differentiated view. Our price target goes to $21 from $46 largely as a result of the break-up and is 14x our 2012E EPS. This implies ~5% potential upside. This multiple seems reasonable and compares to a group average of 15x 2012E EPS."
"On the positive side: ITT's end market and geographic exposures are generally attractive given our bullish view on the cycle...On the negative side: We see uncertainties in the newly independent structure...Management is less proven than our average company and depth is unclear."
For an analyst ratings summary and ratings history on ITT Corp. click here. For more ratings news on ITT Corp. click here.
Shares of ITT Corp. closed at $19.97 yesterday, with a 52 week range of $16.67-$64.00.
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Barclays analyst says, "We are continuing coverage of ITT following the spin-off of the water and defense businesses. We maintain our EW rating and see sector average growth with limited near-term catalysts and churn related to the recent separation. ITT's later cycle operating leverage and cash deployment could prove better than we forecast and drive us to a more differentiated view. Our price target goes to $21 from $46 largely as a result of the break-up and is 14x our 2012E EPS. This implies ~5% potential upside. This multiple seems reasonable and compares to a group average of 15x 2012E EPS."
"On the positive side: ITT's end market and geographic exposures are generally attractive given our bullish view on the cycle...On the negative side: We see uncertainties in the newly independent structure...Management is less proven than our average company and depth is unclear."
For an analyst ratings summary and ratings history on ITT Corp. click here. For more ratings news on ITT Corp. click here.
Shares of ITT Corp. closed at $19.97 yesterday, with a 52 week range of $16.67-$64.00.
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