Expert Outlook: Illinois Tool Works Through The Eyes Of 12 Analysts

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In the last three months, 12 analysts have published ratings on Illinois Tool Works ITW, offering a diverse range of perspectives from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 1 7 3 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 1 0
2M Ago 0 1 4 1 0
3M Ago 1 0 2 1 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $267.08, a high estimate of $318.00, and a low estimate of $245.00. Observing a downward trend, the current average is 1.36% lower than the prior average price target of $270.75.

price target chart

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Illinois Tool Works. The following summary outlines 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 Equal-Weight $260.00 $262.00
David Raso Evercore ISI Group Lowers Underperform $252.00 $255.00
Julian Mitchell Barclays Lowers Equal-Weight $262.00 $265.00
Nathan Jones Stifel Lowers Hold $259.00 $266.00
Joseph O'Dea Wells Fargo Lowers Underweight $245.00 $250.00
Tami Zakaria JP Morgan Lowers Overweight $295.00 $300.00
Nathan Jones Stifel Lowers Hold $266.00 $268.00
Andrew Kaplowitz Citigroup Lowers Neutral $265.00 $279.00
Julian Mitchell Barclays Lowers Equal-Weight $265.00 $270.00
Joseph O'Dea Wells Fargo Lowers Underweight $250.00 $260.00
Jamie Cook Truist Securities Raises Buy $318.00 $312.00
Nathan Jones Stifel Raises Hold $268.00 $262.00

Key Insights:

  • Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Illinois Tool Works. This information provides a snapshot of how analysts perceive 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 gauge the dynamics of price targets, providing estimates for the future value of Illinois Tool Works's stock. This comparison reveals trends in analysts' expectations over time.

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.

Get to Know Illinois Tool Works Better

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.

Illinois Tool Works: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Illinois Tool Works's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2024, the company experienced a revenue decline of approximately -1.28%. This indicates a decrease in the company's 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 surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 19.07% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Illinois Tool Works's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 22.36% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Illinois Tool Works's ROA stands out, surpassing industry averages. With an impressive ROA of 4.86%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.44, caution is advised due to increased financial risk.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per 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.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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

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ITWIllinois Tool Works Inc
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