Market Overview

UPDATE: Stifel Raises PT on Illinois Tool Works Following Announcement of Divestiture Plans

Share:

In a report published Wednesday, Stifel analyst Stanley Elliott reiterated a Buy rating on Illinois Tool Works (NYSE: ITW), and raised the price target from $78.00 to $83.00.

In the report, Stifel noted, “Illinois Tool Works announced plans to move forward with divesting its Industrial Packaging segment. The decision comes after nearly seven months evaluating the merits of either spinning off or divesting the business. While the announcement of the sale was not a surprise to investors the increased commitment to repurchase activity was a positive. The Industrial Packaging divestiture effectively marks the completion of ITW's Portfolio Management phase, during which over 20% of the former portfolio has been divested. We remain positive on the shares and view the divestiture and accompanying accelerated share repurchasing as a sign of confidence in the progress made thus far on the Enterprise Strategy, which should drive EBIT margins in excess of 20%. We anticipate that this accelerated cash return to shareholders, through both dividends and repurchases, will support the shares price and drive further price appreciation. We are adjusting our target to $83 from $78.”

Illinois Tool Works closed on Tuesday at $78.00.

Latest Ratings for ITW

DateFirmActionFromTo
Jan 2021Goldman SachsUpgradesSellNeutral
Jan 2021Credit SuisseUpgradesNeutralOutperform
Oct 2020B of A SecuritiesUpgradesUnderperformNeutral

View More Analyst Ratings for ITW
View the Latest Analyst Ratings

 

Related Articles (ITW)

View Comments and Join the Discussion!

Posted-In: Stanley Elliott StifelAnalyst Color Price Target Analyst Ratings

Latest Ratings

StockFirmActionPT
TRPCredit SuisseUpgrades70.0
NOVWells FargoUpgrades17.0
CIENB of A SecuritiesUpgrades65.0
VIACNeedhamMaintains55.0
GOOGLPiper SandlerInitiates Coverage On2,056.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com