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Illinois Tool Works upgraded to Hold on valuation at Deutsche Bank

Illinois Tool Works upgraded to Hold on valuation at Deutsche Bank

Deutsche Bank last night upgraded Illinois Tool Works (ITW) to Hold from Sell with a price target of $257, up from $231. The firm downgraded Illinois Tool to Sell in August 2022, feeling the stock’s premium multiple was not justified, given the company’s below-average organic growth profile and plateauing operating margins. This has largely played out, resulting in two years of share price underperformance, the analyst tells investors in a research note. Deutsche Bank says Illinois Tool Works now trades roughly in-line with the peer average multiple.

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