UPDATE: Goldman Sachs Upgrades Illinois Tool Works (ITW) to Neutral

(Updated - January 19, 2021 5:20 AM EST)

Goldman Sachs analyst Joe Ritchie upgraded Illinois Tool Works (NYSE: ITW) from Sell to Neutral with a price target of $217.00 (from $195.00).

The analyst comments "The crux of our Sell rating was that fundamentals (e.g., organic growth, EBIT) would not be differentiated in 2020 and valuation was rich following several years of top quartile share outperformance. In our view, the pandemic threw a wrench into evaluating industrials stocks mostly on fundamentals as thematic investing ruled the day last year. While we continue to think themes will be important in 2021, we also think there will be a greater focus on fundamentals as the recovery takes hold. To that end, on our estimates, ITW now screens in the top quartile for organic growth in 2021 with EPS growth in the 73rd percentile across Multis. Since downgrading ITW to Sell on 9/23/19, ITW has outperformed the XLI by 17ppts, while underperforming Large Cap Cyclical peers (e.g. PH, ETN, ROK) by approximately 15-25ppts. During the same period, ITW is up 31.7% vs S&P500 up 26%."

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 $203.19 yesterday.

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