Oscar Gruss Starts ITT Corp. (ITT) at Buy; "Conglomeration" and "Undervalued" are Synonymous
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Price: $219.40 +1.25%
Rating Summary:
16 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
16 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Oscar Gruss initiates coverage on ITT Corp. (NYSE: ITT) with a Buy. PT $50.00.
Oscar analyst says, "ITT is an amalgamation of manufacturing operations that serve the motion & flow control, water and wastewater and defense-related sectors. ITT purchased 25 businesses (with $2.0B revenues) for $3.4B and made $800M in divestitures (with $1.2B revenues) during the five years ending 2010. Given its mix of businesses, an acquisition of the entire company would be unlikely and selling whole segments may not be tax efficient. ITT’s announced spin-offs address these issues and creates three individual “pure play” trading entities. Given the ongoing (and most likely continuing) business consolidation in the waterrelated and defense sectors, we believe the two spin-offs may become acquisition targets. Under this scenario, the sum-of-the-parts upside is $61/share (or more than 40% above the current ITT trading price)."
For more ratings news on ITT Corp. click here and for the rating history of ITT Corp. click here.
Shares of ITT Corp. closed at $42.42 yesterday.
Oscar analyst says, "ITT is an amalgamation of manufacturing operations that serve the motion & flow control, water and wastewater and defense-related sectors. ITT purchased 25 businesses (with $2.0B revenues) for $3.4B and made $800M in divestitures (with $1.2B revenues) during the five years ending 2010. Given its mix of businesses, an acquisition of the entire company would be unlikely and selling whole segments may not be tax efficient. ITT’s announced spin-offs address these issues and creates three individual “pure play” trading entities. Given the ongoing (and most likely continuing) business consolidation in the waterrelated and defense sectors, we believe the two spin-offs may become acquisition targets. Under this scenario, the sum-of-the-parts upside is $61/share (or more than 40% above the current ITT trading price)."
For more ratings news on ITT Corp. click here and for the rating history of ITT Corp. click here.
Shares of ITT Corp. closed at $42.42 yesterday.
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