CFRA Upgrades Illinois Tool Works (ITW) to Hold

CFRA analyst Jonathan Sakraida upgraded Illinois Tool Works (NYSE: ITW) from Sell to Hold with a price target of $250.00 (from $235.00).

The analyst comments "As channel destocking activity has now largely played out and rate cuts appear imminent, we lift our view on ITW shares to Hold from Sell and lift our 12-month target price to $250 from $235. We trim our 2024 EPS estimate to $10.20 from $10.30 and lift our 2025 EPS to $10.83 from $10.68. While we believe that top-line expansion will remain muted in 2H 2024 (CFRA forecasts flat FY 24 sales), we estimate revenue growth picking back up in 2025 (up 3.4% by CFRA's estimate) as rate cuts help ease macro concerns and contribute to a recovering demand backdrop for ITW's end markets. We anticipate the manufacturing sector returning to expansion in 2025 following a long stretch of contraction as restrictive monetary policy has pressured order activity lower. Despite a more positive outlook for ITW, we stop short of recommending shares as a Buy given a valuation that we believe already reflects tailwinds expected in 2025."

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 $246.74 yesterday.

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