Jefferies Updates Estimates on Illinois Tool Works (ITW)

Jefferies updates its estimates on

following ITW's analyst day this past week. In its report, Jefferies writes, "Increasing 2011 outlook on higher incremental margin assumptions. Management is targeting incrementals of 30-35% for 2011 (our prior estimate was 24%). Acquisition environment is improving and ITW could do upwards of $1B in acquired revenues next year." Jefferies maintains its Buy rating and $60 price target on ITW. ITW closed Friday at $50.41.