Illinois Tool Works (ITW) PT Raised to $114 at Credit Suisse

Credit Suisse analyst J. Cook raised its price target on Illinois Tool Works (NYSE: ITW) to $114.00 (from $106.00) while maintaining a Neutral rating.

Cook commented, "ITW's stock popped nearly 3% after beating Q2' EPS by 6%, reflecting solid top line organic growth and continued margin expansion. ITW grew organic sales in 6 out of the 7 segments despite macro headwinds. This is key as the market had been skeptical of the company's organic growth targets. Furthermore, ITW is on track to have 85% of its portfolio growing above the market as we exit 2016. Total operating margins jumped 180 bps to 23.1%, a record for the company, with an improvement in 5 out of the 7 segments. Consumer facing businesses grew 3% y/y and Industrial fell 2% y/y as welding continues to drag on results. However, ITW still sees a bottoming to industrials outside of welding. Bottom line, ITW Enterprise Initiatives continue to gain momentum. We increase our FY2016-2018 EPS to $5.60, $6.10, and $6.60 (from $5.50, $6.00 and $6.50 respectively) and TP to $114 (from $106) which assumes 19 times our 2018 EPS estimates discounted back."

For an analyst ratings summary and ratings history on Illinois Tool Works click here. For more ratings news on Illinois Tool Works click here.

Shares of Illinois Tool Works closed at $114.22 yesterday.

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