Analyst Andrew Obin of Bank of America Securities reiterated a Hold rating on Illinois Tool Works (ITW – Research Report), retaining the price target of $270.00.
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Andrew Obin has given his Hold rating due to a combination of factors including Illinois Tool Works’ (ITW) conservative guidance for 2025, which is below both Bank of America’s estimates and market consensus. The company has adopted a cautious approach, similar to other short-cycle companies, likely due to previous reductions in topline forecasts throughout 2024. Although ITW’s earnings per share exceeded expectations, sales and operating profits fell short, leading to mixed results across its various segments.
Furthermore, ITW’s management projects limited organic growth and has set a modest revenue guidance of 0-2% growth, taking into account macroeconomic uncertainties. The company’s focus on restructuring and enterprise initiatives is expected to drive margin expansion, yet it does not factor in significant volume leverage or price/cost benefits. As such, while there is potential upside in the second half of 2025, particularly if volumes improve, the current conservative stance justifies the Hold rating.
In another report released on January 24, Stifel Nicolaus also maintained a Hold rating on the stock with a $266.00 price target.
Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is neutral on the stock.