Takeaways From ITW's Investor Meeting

Goldman Sachs has published a research report on Illinois Tool Works

after the company's investor meeting last Friday. In the report, Goldman Sachs writes "Key takeaways from ITW's annual investor meeting last Friday included (1) 2011 organic revenue growth is expected at 5%-7% vs. GS at 4%, with primary variances vs. our assumptions (a) Construction 8%-10% vs. GS 5%, (b) Power Systems 7%-9% vs. GS 5%, an (c) Industrial Packaging 5%-7% vs. GS 3%; (2) ITW foresees total incremental margins of 30%-35% in 2011 vs. GS 22%, with more benign raw material inflation and acquisition impact key drivers; (3) ITW is targeting stepped up 2011-2015 organic revenue growth of 5%-6% vs. 3% over the 2004-2008 up-cycle via increased innovation investment, emerging markets and new platforms, which are targeted at six platforms this cycle vs. three last; and (4) acquired revenues over the 2011-2015 period are targeted +5%-7% annually, resulting in total targeted revenue growth of 10%-13% over the period." Goldman Sachs maintains its Neutral rating and $54 price target. Illinois Tool Works closed Friday at $11.42.