Jefferies Cuts PT on ITW (ITW) Post-Q2 Results; Remains Buyer, Though Margins Tightening
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Price: $282.29 -0.16%
Rating Summary:
3 Buy, 17 Hold, 6 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 17 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Jefferies cut its price target on Illinois Tool Works (NYSE: ITW) from $70 to $65 following second-quarter results. The firm maintained its Buy rating.
Commenting on the results, Jefferies said, "Sales were in line with expectations while mix and price/cost headwinds negatively impacted margins. We believe the pull-back has been overdone as end markets continue to rebound and additional acquisitions increase the potential for margin expansion in out years."
The firm is lowering its fiscal 2011 EPS estimate from $3.93 to $3.82 "on lower margins due to a higher mix of acquisition revenues...cost/price headwinds should moderate as the year progresses and potentially reverse by 4Q."
Jefferies continues to forecast $800 million in acquired revs for 2011, which is at the lower-end of Illinois Tool Works' $800 million to $1 billion range.
Jefferies fiscal 2012 EPS moves from $4.75 to $4.60.
For more analyst color on Illinois Tool Works, click here. For a ratings history, click here.
Illinois Tool Works shares are 2.4 percent lower on the session.
Commenting on the results, Jefferies said, "Sales were in line with expectations while mix and price/cost headwinds negatively impacted margins. We believe the pull-back has been overdone as end markets continue to rebound and additional acquisitions increase the potential for margin expansion in out years."
The firm is lowering its fiscal 2011 EPS estimate from $3.93 to $3.82 "on lower margins due to a higher mix of acquisition revenues...cost/price headwinds should moderate as the year progresses and potentially reverse by 4Q."
Jefferies continues to forecast $800 million in acquired revs for 2011, which is at the lower-end of Illinois Tool Works' $800 million to $1 billion range.
Jefferies fiscal 2012 EPS moves from $4.75 to $4.60.
For more analyst color on Illinois Tool Works, click here. For a ratings history, click here.
Illinois Tool Works shares are 2.4 percent lower on the session.
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