Citigroup Raises ITT Target To $66 From $55

In a recent report, Citigroup says that it views the proposed ITT Corporation ITT break-up “as a capitulating but nonetheless decisive move by CEO Steve Loranger and team to unlock the value in ITT that had been saddled with an imbalanced 55% exposure to defense.” “Prior to this announcement, we had calculated a $60 SOP value,” Citigroup writes. “We can make the case for modest stock gains from here as investors factor-in the potential takeout prospects for the three new entities after the spin. “We are increasing our price target from $55 to $66 as we switch from valuing the shares on a 2011 P/E discount to peers to our 2011 SOP valuation and have a Hold rating.” ITT Corporation currently trades at $60.31.