UPDATE: JP Morgan Downgrades Illinois Tool Works to Neutral on Valuation
JP Morgan reduced its rating on Illinois Tool Works (NYSE: ITW) from Overweight to Neutral and reduced its price target from $65 to $60.
JP Morgan noted, "We are downgrading ITW to Neutral, from Overwight, as the stock is now trading at a premium to the diversified industrials group. The shares have significantly outperformed YTD (up 31.9% vs. the S&P Machinery Sector up 9.3% and the S&P 500 up 17.8%) and we view the opportunity for additional upside as limited in the near term. While large acquisitions (>$100 million) in key segments may provide upside to revenues and management's actions may lead to leaner operations—and thus, higher margins—expectations for savings from the transformation have risen over the past few months and any disappointment at the company's December Analyst Day event may result in underperformance."
Illinois Tool Works closed at $60.39 on Monday.
Latest Ratings for ITW
|Jul 2015||BMO Capital||Maintains||Outperform|
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