Barrington Research Cuts Price Target on Illinois Tool Works (ITW), Will Be Able to With Stand a Recession
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Price: $282.55 -0.07%
Rating Summary:
3 Buy, 17 Hold, 6 Sell
Rating Trend:
Up
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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Barrington Research is reiterating its Outperform rating on shares of Illinois Tool Works (NYSE: ITW) while cutting its price target from $80 to $55.
In July the company experienced a base sales growth of 6 percent year-over-year with actual growth being up 3 percent, but due to growing concerns of 2011-2012 recession, shares have fallen roughly 28 percent along side the rest of the industrial universe.
As a result of theses concerns the firm believes that sales may no be as high as previously anticipated and is lowering its 2011 and 2012 EPS estimates from $3.84 and $4.53 to $3.69 and $3.96.
An analyst at Barrington comments, "We believe that management is seasoned from the last recession as the 2009 trough operating margin exceeded our expectation. We believe that ITW should be able to mitigate 2012 slowing sales growth and perhaps base sales declines with 80/20 operational excellence and acquisitions."
For more ratings news on Illinois Tool Works click here and for the rating history of Illinois Tool Works click here.
Shares of Illinois Tool Works closed at $41.36 yesterday.
In July the company experienced a base sales growth of 6 percent year-over-year with actual growth being up 3 percent, but due to growing concerns of 2011-2012 recession, shares have fallen roughly 28 percent along side the rest of the industrial universe.
As a result of theses concerns the firm believes that sales may no be as high as previously anticipated and is lowering its 2011 and 2012 EPS estimates from $3.84 and $4.53 to $3.69 and $3.96.
An analyst at Barrington comments, "We believe that management is seasoned from the last recession as the 2009 trough operating margin exceeded our expectation. We believe that ITW should be able to mitigate 2012 slowing sales growth and perhaps base sales declines with 80/20 operational excellence and acquisitions."
For more ratings news on Illinois Tool Works click here and for the rating history of Illinois Tool Works click here.
Shares of Illinois Tool Works closed at $41.36 yesterday.
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