Market Overview

UPDATE: JP Morgan Downgrades Illinois Tool Works to Neutral on Valuation

Related ITW
Earnings Scheduled For April 21, 2015
The Most Important Message Investors Need For Earnings Season
Illinois Tool Works Inc.: Great Return On Capital, Inexpensively Priced (Seeking Alpha)

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

Apr 2015BarclaysMaintainsEqual-weight
Apr 2015BarclaysMaintainsEqual-weight
Jan 2015BarclaysMaintainsEqual-weight

View More Analyst Ratings for ITW
View the Latest Analyst Ratings

Posted-In: JP MorganAnalyst Color Downgrades Intraday Update Analyst Ratings


Related Articles (ITW)

Around the Web, We're Loving...