Unveiling 8 Analyst Insights On Illinois Tool Works

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Analysts' ratings for Illinois Tool Works ITW over the last quarter vary from bullish to bearish, as provided by 8 analysts.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 0 2 4 0
Last 30D 0 0 0 1 0
1M Ago 0 0 0 0 0
2M Ago 1 0 2 2 0
3M Ago 1 0 0 1 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $257.0, with a high estimate of $305.00 and a low estimate of $217.00. This upward trend is apparent, with the current average reflecting a 2.39% increase from the previous average price target of $251.00.

Decoding Analyst Ratings: A Detailed Look

The analysis of recent analyst actions sheds light on the perception of Illinois Tool Works by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Julian Mitchell Barclays Lowers Underweight $217.00 $229.00
Julian Mitchell Barclays Lowers Underweight $229.00 $230.00
Joseph O'Dea Wells Fargo Lowers Underweight $244.00 $255.00
Jamie Cook Truist Securities Raises Buy $305.00 $303.00
Nathan Jones Stifel Raises Hold $259.00 $258.00
Andrew Kaplowitz Citigroup Raises Neutral $269.00 $258.00
Julian Mitchell Barclays Raises Underweight $230.00 $224.00
Jamie Cook Truist Securities Announces Buy $303.00 -

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Illinois Tool Works. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Illinois Tool Works compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Illinois Tool Works's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of Illinois Tool Works's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

Delving into Illinois Tool Works's Background

Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 84 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. Europe, the Middle East, and Africa is the next largest contributor at about 25% of revenue. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.

Financial Insights: Illinois Tool Works

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Challenges: Illinois Tool Works's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -1.14%. This indicates a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Illinois Tool Works's net margin is impressive, surpassing industry averages. With a net margin of 20.61%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Illinois Tool Works's ROE excels beyond industry benchmarks, reaching 27.16%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Illinois Tool Works's ROA stands out, surpassing industry averages. With an impressive ROA of 5.25%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 2.76, Illinois Tool Works faces challenges in effectively managing its debt levels, indicating potential financial strain.

Analyst Ratings: Simplified

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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