The Analyst Verdict: Illinois Tool Works In The Eyes Of 9 Experts

Across the recent three months, 9 analysts have shared their insights on Illinois Tool Works ITW, expressing a variety of opinions spanning from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 0 6 2 0
Last 30D 0 0 1 0 0
1M Ago 0 0 2 1 0
2M Ago 0 0 0 0 0
3M Ago 1 0 3 1 0

In the assessment of 12-month price targets, analysts unveil insights for Illinois Tool Works, presenting an average target of $249.11, a high estimate of $284.00, and a low estimate of $233.00. Witnessing a positive shift, the current average has risen by 1.26% from the previous average price target of $246.00.

Diving into Analyst Ratings: An In-Depth Exploration

The perception of Illinois Tool Works by financial experts is analyzed through recent analyst actions. 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
Nathan Jones Stifel Raises Hold $255.00 $233.00
Andrew Kaplowitz Citigroup Raises Neutral $265.00 $254.00
Julian Mitchell Barclays Raises Equal-Weight $240.00 $237.00
Joseph O'Dea Wells Fargo Raises Underweight $235.00 $230.00
David Raso Evercore ISI Group Lowers Underperform $249.00 $252.00
Nathan Jones Stifel Raises Hold $233.00 $227.00
Julian Mitchell Barclays Lowers Equal-Weight $237.00 $240.00
Jamie Cook Truist Securities Lowers Buy $284.00 $302.00
Mig Dobre Baird Raises Neutral $244.00 $239.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Illinois Tool Works. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate 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.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Illinois Tool Works's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

Unveiling the Story Behind Illinois Tool Works

Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.

Breaking Down Illinois Tool Works's Financial Performance

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Negative Revenue Trend: Examining Illinois Tool Works's financials over 3M reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -3.37% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Illinois Tool Works's net margin excels beyond industry benchmarks, reaching 18.23%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Illinois Tool Works's ROE excels beyond industry benchmarks, reaching 21.35%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Illinois Tool Works's ROA excels beyond industry benchmarks, reaching 4.58%. This signifies efficient management of assets and strong financial health.

Debt Management: Illinois Tool Works's debt-to-equity ratio surpasses industry norms, standing at 2.55. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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

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