Wells Fargo Cuts Valuation Range on Illinois Tool Works (ITW), Weaker Than Anticipated Growth
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Price: $290.81 -0.06%
Rating Summary:
3 Buy, 17 Hold, 6 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 17 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wells Fargo is reiterating its Outperform rating on shares of Illinois Tool Works (NYSE: ITW), but is lowering its valuation range from $62-$64 to $52-$54 due a macro slowdown in end markets.
The firm is forecasting slower than previously expected growth in North America and a slight contraction in its European exposure, which accounted for 31 percent of total sales in 2010.
To go inline with its new growth model, Wells Fargo is cutting its 2011 and 2012 EPS estimates from $3.72 and $4.35 to $3.70 and $4.00. Due to slower automotive growth in North America and Europe, Wells Fargo reduced its fourth quarter 2011 EPS estimate from $0.89 to $0.87. The firms revenue estimates for the two years are unchanged at $17.89 billion and $18.8 billion.
An analyst at Wells Fargo comments, "We continue to believe the stock represents a good value at current levels and like the longer-term earnings growth potential due to current internal margin improvement initiatives and incremental acquisition contribution that should drive above-market growth."
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 $43.41 yesterday.
The firm is forecasting slower than previously expected growth in North America and a slight contraction in its European exposure, which accounted for 31 percent of total sales in 2010.
To go inline with its new growth model, Wells Fargo is cutting its 2011 and 2012 EPS estimates from $3.72 and $4.35 to $3.70 and $4.00. Due to slower automotive growth in North America and Europe, Wells Fargo reduced its fourth quarter 2011 EPS estimate from $0.89 to $0.87. The firms revenue estimates for the two years are unchanged at $17.89 billion and $18.8 billion.
An analyst at Wells Fargo comments, "We continue to believe the stock represents a good value at current levels and like the longer-term earnings growth potential due to current internal margin improvement initiatives and incremental acquisition contribution that should drive above-market growth."
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 $43.41 yesterday.
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