Illinois Tool Works To Host Annual Outlook Meeting On 12/3 In New York

Deutsche Bank has published a research report on Illinois Tool Works, Inc.

in anticipation of the company's Annual Outlook Meeting in New York this Friday, 12/3. In the report, Deutsche Bank writes "On Friday, ITW will host its Annual Meeting, where the highlight will be the initiation of 2011e guidance. Our detailed bridge suggests a range of $3.30-3.60, implying limited/no momentum to $3.64 consensus. When we roll up our expectations by end market, we view 4-6% core growth as most likely for ITW. Key puts/takes: (1) Transport organic growth steps down to 5% (vs. 20% in 2010) driven by lower EU production (down 3% YoY), (2) Modest growth in Construction-driven segments of Construction Products (5% forecast, in-line with 2010) and Dec Surfaces (4% forecast vs. flat in 2010) as we do not expect recovery in Non-Resi (ABI index near 50) or Resi (housing starts remain weak) to gain traction until 2012; (3) We continue to believe that General Industrial is headed for a soft patch and so we have moderated Industrial Packaging (5% in 2011 vs. 15% in 2010) and Polymers & Fluids (4% vs. 8%) segments." Deutsche Bank maintains its Hold rating and $54 price target. Illinois Tool Works closed yesterday at $47.63.