KeyBanc Reinstates Coverage on ITT Corp. (ITT) at Buy; Favorably Disposed Toward Later Cycle Exposures
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Price: $219.81 --0%
Rating Summary:
16 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 20
Rating Summary:
16 Buy, 9 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 6 | Down: 9 | New: 20
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KeyBanc reinstates coverage on ITT Corp. (NYSE: ITT) with a Buy. PT $24.00.
KeyBanc analyst says, "Our 2011 estimate is set at $1.61, including a 4Q11 estimate (December) of $0.36. Our 2012 estimate is set at $1.90. We point out that these estimates, both past and future, could be subject to change as more detailed financials and other related filings become available regarding the new ITT, with the spin offs of Xylem and ITT Exelis into separately traded public companies now completed. These estimates also exclude costs related to the spin offs, restructuring expenses and asbestos charges, though are inclusive of incremental, ongoing corporate expenses and related public company costs for the new ITT (estimated to be about $20 million per year, split roughly evenly between segment operating income and corporate allocations). In our view, we believe the new ITT is attractive for investors seeking a mix of later cycle end market exposures (oil/gas, mining, chemical, power generation and commercial aerospace), relatively high mix of aftermarket revenue (30% of sales, 60% of segment operating profit) that should provide some top- and bottom-line support over the course of a cycle and a solid emerging market presence (30% of sales)."
For an analyst ratings summary and ratings history on ITT Corp. click here. For more ratings news on ITT Corp. click here.
Shares of ITT Corp. closed at $19.37 yesterday.
KeyBanc analyst says, "Our 2011 estimate is set at $1.61, including a 4Q11 estimate (December) of $0.36. Our 2012 estimate is set at $1.90. We point out that these estimates, both past and future, could be subject to change as more detailed financials and other related filings become available regarding the new ITT, with the spin offs of Xylem and ITT Exelis into separately traded public companies now completed. These estimates also exclude costs related to the spin offs, restructuring expenses and asbestos charges, though are inclusive of incremental, ongoing corporate expenses and related public company costs for the new ITT (estimated to be about $20 million per year, split roughly evenly between segment operating income and corporate allocations). In our view, we believe the new ITT is attractive for investors seeking a mix of later cycle end market exposures (oil/gas, mining, chemical, power generation and commercial aerospace), relatively high mix of aftermarket revenue (30% of sales, 60% of segment operating profit) that should provide some top- and bottom-line support over the course of a cycle and a solid emerging market presence (30% of sales)."
For an analyst ratings summary and ratings history on ITT Corp. click here. For more ratings news on ITT Corp. click here.
Shares of ITT Corp. closed at $19.37 yesterday.
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