Bank of America Reiterates Buy, $64 PO on Illinois Tool Works

Bank of America maintains its Buy rating and $64 price objective on Illinois Tool Works ITW on automotive upside. Bank of America says, "In 2011, ITW derived roughly 18% of sales from auto end markets (over half in North America). In turn, ITW appears best positioned to benefit from improving sentiment toward NA auto markets. The January SAAR of 14.1mm (unit sales) was significantly ahead of consensus forecasts, while 4Q11 EPS results for the OEMs and suppliers have generally been exceeding investors' expectations. We are also encouraged by other metrics, including an aging U.S. vehicle fleet (key driver of replacement demand). Positively, ITW's NA auto production forecast for 2012 of 13.7mm units could prove conservative." ITW closed at $56 a share yesterday.