Wachovia Upgrades Illinois Tool Works (ITW) to Outperform; 2010 Earnings Re-Acceleration & Longer-Term Growth

June 26, 2009 7:59 AM EDT

Wachovia upgrades Illinois Tool Works (NYSE: ITW) from Market Perform to Outperform. Valuation range: $45 to $48.

Wahcovia analyst says, "After recent management meetings, we have a higher appreciation for the future margin benefit of the company’s internal restructuring initiatives. We are increasing our 2009 EPS estimate to $1.46 from $1.30 and our 2010 EPS estimate to $2.20 from $1.70, and we are also introducing our 2011E $2.75. In general, we anticipate 50% yr/yr earnings growth in 2010 followed by 25% yr/yr earnings growth in 2011. Our increased expectations are driven primarily by an anticipated 350-400bps of operating margin benefit and higher capacity utilization driven by both expected higher industry demand and market share in ITW’s North American automotive, residential construction and packaging consumable market exposure."

To see more analyst ratings on ITW Click Here.

Illinois Tool Works Inc. (ITW) is a multinational manufacturer of a range of industrial products and equipment.

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