Illinois Tool Works (ITW) Upgraded by Zacks Investment Research to “Buy”

Illinois Tool Works (NYSE:ITW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The firm currently has a $158.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 11.47% from the company’s current price.

According to Zacks, “We believe that Illinois Tool Works is well positioned to gain from its solid product portfolio, strengthening foothold in end markets and strategic initiatives to improve margins. Also, the policy of rewarding shareholders handsomely will work in the company’s favor. For 2018, the company increased its earnings guidance from $7.45-$7.65 to $7.60-$7.80 per share. Organic sales growth is expected to be 3-4%, while operating margin will likely be within 25-25.5%. Earnings estimates on the company have increased for both 2018 and 2019 in the past 60 days. However, the company the company's shares have underperformed the industry in the past three months.”

Several other equities analysts have also issued reports on ITW. Wolfe Research assumed coverage on Illinois Tool Works in a report on Wednesday. They issued an “underperform” rating for the company. ValuEngine lowered Illinois Tool Works from a “buy” rating to a “hold” rating in a report on Tuesday, April 24th. BMO Capital Markets reduced their target price on Illinois Tool Works from $175.00 to $160.00 and set a “market perform” rating for the company in a report on Friday, May 4th. Stifel Nicolaus dropped their price objective on Illinois Tool Works from $186.00 to $162.00 and set a “hold” rating on the stock in a research note on Monday, April 16th. Finally, JPMorgan Chase & Co. dropped their price objective on Illinois Tool Works from $168.00 to $155.00 and set a “neutral” rating on the stock in a research note on Tuesday, April 10th. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating, seven have assigned a buy rating and one has assigned a strong buy rating to the stock. Illinois Tool Works has an average rating of “Hold” and an average target price of $175.40.

Illinois Tool Works opened at $141.74 on Wednesday, MarketBeat reports. The company has a market capitalization of $47.75 billion, a PE ratio of 21.51, a price-to-earnings-growth ratio of 1.79 and a beta of 1.23. The company has a debt-to-equity ratio of 1.65, a current ratio of 2.20 and a quick ratio of 1.74. Illinois Tool Works has a 12-month low of $135.07 and a 12-month high of $179.07.

Illinois Tool Works (NYSE:ITW) last released its earnings results on Thursday, April 26th. The industrial products company reported $1.90 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.86 by $0.04. The company had revenue of $3.74 billion during the quarter, compared to analyst estimates of $3.69 billion. Illinois Tool Works had a return on equity of 51.79% and a net margin of 12.36%. Illinois Tool Works’s quarterly revenue was up 7.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.54 earnings per share. analysts anticipate that Illinois Tool Works will post 7.78 earnings per share for the current fiscal year.

Large investors have recently bought and sold shares of the business. Almanack Investment Partners LLC. purchased a new stake in shares of Illinois Tool Works during the fourth quarter worth $112,000. Clearwater Capital Advisors LLC purchased a new stake in shares of Illinois Tool Works during the first quarter worth $117,000. Archford Capital Strategies LLC purchased a new stake in shares of Illinois Tool Works during the first quarter worth $130,000. Parisi Gray Wealth Management lifted its position in shares of Illinois Tool Works by 88.8% during the first quarter. Parisi Gray Wealth Management now owns 791 shares of the industrial products company’s stock worth $123,000 after acquiring an additional 372 shares in the last quarter. Finally, Risk Paradigm Group LLC purchased a new stake in shares of Illinois Tool Works during the fourth quarter worth $133,000. Hedge funds and other institutional investors own 77.02% of the company’s stock.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment worldwide. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses.

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