Goldman Sachs analyst Joe Ritchie raised the price target on Ingersoll-Rand (NYSE: IR) to $68.00 while maintaining a Buy rating.

The analyst commented, "IR posted strong segment EBITDA, which was 7% above FactSet consensus expectations driven primarily by the ITS segment with EBITDA margins expanding +150bps y/y. Looking ahead, management provided an updated FY21 EBITDA guide ($1,175-1,195mn) which we think could be conservative (GS: $1,195mn) given strong order price/cost expected to remain positive in 4Q and 20-25% implied incrementals in 4Q (vs. >30% in 3Q). IR expects price/cost to remain comparable to 3Q as they remain positive about the proactive pricing they have already taken YTD in an effort to mitigate inflationary headwinds. We are also encouraged by the solid progress IR continues to make on realizing the $300mn cost synergies. Beyond this year, we believe IR is well positioned to compound value for shareholders given the company's net leverage is at 1.3x and it has total available liquidity of ~$3.1bn to accelerate growth via M&A. Further, we expect management to be disciplined around M&A as it continues to identify value-accretive opportunities. Lastly, we look forward to the upcoming Investor Day, where we expect to hear on management's long-term growth/margin expectations and portfolio priorities. We remain Buy rated and raise our price target to $68."