Illinois Tool Works (ITW) Rating Increased to Buy at Zacks Investment Research

Illinois Tool Works (NYSE:ITW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Thursday. The firm currently has a $192.00 price target on the industrial products company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 11.36% from the company’s previous close.

According to Zacks, “In the last three months, Illinois Tool Works' shares have outperformed the industry. We believe that the company is well positioned to benefit from its solid product portfolio, strengthening foothold in various end markets and strategic initiatives to improve margins. From 2018 to 2022, the company expects organic revenue growth to be in the 3-5% range, operating margin to be in excess of 25% and earnings per share to grow 8-10% in each year. In addition, it initiated its financial guidance for 2018, anticipating GAAP earnings to be within $7.05-$7.25 per share. Organic revenue growth is predicted to be within 3-4% and operating margin to be 25-25.5%. The projections for 2017 (results not yet released) have been reaffirmed, with earnings per share still anticipated to be $6.62-$6.72. Earnings estimates on the stock improved for 2018 in the last 60 days.”

Other research analysts have also recently issued reports about the stock. Morgan Stanley reiterated an “equal weight” rating and set a $147.00 target price (up from $136.00) on shares of Illinois Tool Works in a report on Monday, October 2nd. BMO Capital Markets increased their target price on shares of Illinois Tool Works to $180.00 and gave the stock an “outperform” rating in a report on Wednesday, December 6th. Bank of America assumed coverage on shares of Illinois Tool Works in a report on Monday, December 11th. They set a “buy” rating and a $190.00 target price on the stock. JPMorgan Chase & Co. upgraded shares of Illinois Tool Works from an “underweight” rating to a “neutral” rating and increased their target price for the stock from $132.00 to $140.00 in a report on Tuesday, October 10th. Finally, Jefferies Group reiterated a “buy” rating and set a $190.00 target price on shares of Illinois Tool Works in a report on Wednesday, November 29th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and eight have issued a buy rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $168.25.

Illinois Tool Works (NYSE:ITW) traded up $2.12 during mid-day trading on Thursday, reaching $172.42. 1,250,000 shares of the company traded hands, compared to its average volume of 1,200,000. The stock has a market cap of $59,070.00, a P/E ratio of 26.44, a PEG ratio of 2.32 and a beta of 1.18. Illinois Tool Works has a 52 week low of $123.15 and a 52 week high of $172.64. The company has a quick ratio of 1.98, a current ratio of 2.41 and a debt-to-equity ratio of 1.48.

Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings results on Monday, October 23rd. The industrial products company reported $1.85 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.65 by $0.20. The company had revenue of $3.62 billion for the quarter, compared to the consensus estimate of $3.57 billion. Illinois Tool Works had a net margin of 16.12% and a return on equity of 47.21%. The firm’s revenue was up 3.4% compared to the same quarter last year. During the same quarter last year, the firm posted $1.50 EPS. analysts predict that Illinois Tool Works will post 6.7 earnings per share for the current fiscal year.

In other news, insider Steven L. Martindale sold 64,818 shares of the firm’s stock in a transaction dated Wednesday, October 25th. The shares were sold at an average price of $157.19, for a total value of $10,188,741.42. Following the sale, the insider now directly owns 95,328 shares in the company, valued at approximately $14,984,608.32. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Juan Valls sold 48,622 shares of the firm’s stock in a transaction dated Wednesday, October 25th. The shares were sold at an average price of $156.73, for a total transaction of $7,620,526.06. Following the completion of the sale, the executive vice president now owns 71,101 shares in the company, valued at $11,143,659.73. The disclosure for this sale can be found here. Insiders sold a total of 208,258 shares of company stock worth $33,653,349 over the last 90 days. Company insiders own 0.90% of the company’s stock.

Several large investors have recently added to or reduced their stakes in ITW. Beach Investment Management LLC. bought a new stake in shares of Illinois Tool Works in the 2nd quarter valued at about $1,073,000. Dupont Capital Management Corp boosted its stake in Illinois Tool Works by 20.0% in the 2nd quarter. Dupont Capital Management Corp now owns 13,086 shares of the industrial products company’s stock worth $1,875,000 after purchasing an additional 2,183 shares in the last quarter. LMR Partners LLP acquired a new stake in Illinois Tool Works in the 2nd quarter worth approximately $3,016,000. State of Wisconsin Investment Board boosted its stake in Illinois Tool Works by 33.3% in the 2nd quarter. State of Wisconsin Investment Board now owns 261,645 shares of the industrial products company’s stock worth $37,481,000 after purchasing an additional 65,290 shares in the last quarter. Finally, Horan Capital Advisors LLC. boosted its stake in Illinois Tool Works by 2.5% in the 2nd quarter. Horan Capital Advisors LLC. now owns 18,001 shares of the industrial products company’s stock worth $2,579,000 after purchasing an additional 447 shares in the last quarter. Institutional investors and hedge funds own 74.73% of the company’s stock.

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Illinois Tool Works Company Profile

Illinois Tool Works Inc is a manufacturer of industrial products and equipment. The Company operates through seven segments. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment offers commercial food equipment. The Test & Measurement and Electronics segment produces test and measurement, and electronic manufacturing and maintenance, repair and operations (MRO) solutions.

Analyst Recommendations for Illinois Tool Works (NYSE:ITW)

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