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Illinois Tool Works: Analysts’ Recommendations

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Analysts’ consensus on Illinois Tool Works

There has been a considerable increase in the number of analysts tracking Illinois Tool Works (ITW) in the past six months. Currently, 21 analysts are actively tracking the stock. Among the analysts, 19% recommended a “buy,” 67% recommended a “hold,” and 5% recommended a “sell.” Investors follow analysts’ recommendations and views to track stock price trends.

Analysts’ consensus on Illinois Tool Works indicates a target price of $136.94, which implies a return potential of 9.4% over the closing price as of December 20. In the past three months, analysts have reduced Illinois Tool Works’ target price from $152.31 to the current target price although the company reported better-than-expected third-quarter earnings. The pressure of an increase in raw material prices, unfavorable currency, and sluggish sales growth is challenging for Illinois Tool Works. As a result, many analysts have recommended to “hold” the stock.

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Individual brokerages’ views

  • Morgan Stanley (MS) rated Illinois Tool Works as “underweight” and cut its target price to $115.00. Morgan Stanley expects the stock to decline 8% over the closing price as of December 20.
  • Deutsche Bank (DB) rated Illinois Tool Works as a “sell” and cut its target price to $1,258. Currently, the stock is trading marginally above the recommended target price as of December 20.
  • BMO (BMO) cut its target price for Illinois Tool Works to $145.00, which implies a potential return of 15.8% over its closing price as of December 20.

Investors who want to hold Illinois Tool Works indirectly could consider the iShares U.S. Industrials ETF (IYJ), which holds 1.3% of its portfolio in Illinois Tool Works as of December 20.

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