Illinois Tool Works (ITW) to Lay Out Cost Savings Plans

This Friday manufacturing company Illinois Tool Works Inc. (NYSE: ITW) will host its annual investor day in New York. During the meeting, analysts expect management to announce cost savings targets, which many hope will lead to improved margin.

"As an order of magnitude, we would expect roughly 50 bps in 2013, ramping to 100 bps in 2014 and 200 bps in 2015 even in a low/ no revenue growth environment," said Jefferies analyst Stephen Volkmann.

He is recommending shares of ITW as a well position defensively stock.

"Strong cash flow generation, ample share repurchase opportunity and additional cost reduction programs allow ITW multiple levers to pull to offset any organic growth moderation in the near term. We believe the low earnings volatility should provide investors some shelter in uncertain times with the opportunity to capture eventual upside from end-markets that remain depressed," concluded Volkmann.

Jefferies has a Buy rating on Illinois Tool Works (NYSE: ITW) with a modified price target of $72.00 (from $70.00).

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 $61.86 yesterday.

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