Illinois Tool Works Rating Reiterated by Zacks (ITW)
Illinois Tool Works (NYSE:ITW)‘s stock had its “neutral” rating reaffirmed by Zacks in a note issued to investors on Friday, Analyst Ratings Net reports. They currently have a $87.00 price target on the stock. Zacks‘ price target would indicate a potential upside of 5.02% from the stock’s previous close.
Zacks‘ analyst wrote, “We maintain a Neutral recommendation on Illinois Tool Works. The company on its Analyst and Investor Day provided an update on its five-year enterprise strategy. The company claims to be progressing well having divested 20 non-core businesses since 2011 and aiming to divest 25% of 2011 revenues by 2014. The number of operating divisions has been shortened, leading to overall margin expansion. Cost savings of $600-$800 million are targeted through business structure simplification and strategic sourcing strategies. Additionally, the company provided its 2014 guidance including earnings per share in the range of $4.30 $4.50, organic revenue growth within 2% 3% and operating margin of roughly 19%. The company is also focused on rewarding its shareholders by spending roughly $700 million in dividend payments and $1.8 billion on share repurchases. Investment on acquisitions is predicted to be roughly $375 million.”
Illinois Tool Works (NYSE:ITW) last posted its quarterly earnings results on Tuesday, October 22nd. The company reported $0.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.94 by $0.05. The company had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.59 billion. During the same quarter in the previous year, the company posted $1.09 earnings per share. The company’s revenue for the quarter was down 20.7% on a year-over-year basis.
A number of other analysts have also recently weighed in on ITW. Analysts at Barclays raised their price target on shares of Illinois Tool Works from $81.00 to $91.00 in a research note to investors on Monday. They now have an “equal weight” rating on the stock. Separately, analysts at FBR Capital Markets raised their price target on shares of Illinois Tool Works from $90.00 to $97.00 in a research note to investors on Tuesday, December 31st. They now have an “outperform” rating on the stock. Finally, analysts at UBS AG raised their price target on shares of Illinois Tool Works from $77.00 to $81.00 in a research note to investors on Monday, December 9th. They now have a “hold” rating on the stock. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and seven have given a buy rating to the company’s stock. Illinois Tool Works has a consensus rating of “Hold” and an average price target of $82.85.
Illinois Tool Works Inc (NYSE:ITW), is a multinational manufacturer of a diversified range of industrial products and equipment with operations in 58 countries.
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