UPDATE: Citigroup Reiterates Neutral Rating, Raises PT on Illinois Tool Works

In a report published Wednesday, Citigroup reiterated its Neutral rating on Illinois Tool Works ITW, and raised its price target from $55.00 to $60.00. Citigroup noted, “We are increasing our target price from $55 to $60 to reflect our shift in our sector valuation and a slightly higher target relative multiple. We continue to assume the large-cap MI-EE group should trade for 14.0x EPS, but are now applying this to our 2013 EPS estimates instead of the blend of 2012/2013 that we used previously. Our ITW target now assumes the shares trade for a 5% discount to the target group multiple, near the midpoint of its (15%) to 10% historical relative range, and up slightly from the 10% discount we used previously.” Illinois Tool Works closed on Tuesday at $58.92.