Research Alert: CFRA Maintains Hold Opinion On Shares Of Illinois Tool Works Inc.
04:15 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We maintain our 12-month target price of $210, valuing the shares at 27.3x our 2021 EPS estimate of $7.69 (lifted from $7.13), higher than ITW's five-year forward average and peers' forward average of 22.6x based on our outlook for positive growth in ITW's end markets, led by Automotive OEM. We start our 2022 EPS estimate at $8.50. ITW posts Q4 EPS of $2.02 vs. $2.21, beating the consensus estimate for $1.77. ITW posts sequential top-line growth in Q4 and year-over-year growth of 0.2%. Growth was positive for Automotive OEM (up 8%), Polymers & Fluids (up 7%), and Construction Products (up 8%). We see continuing trends in 2021 with strength in Automotive OEM and construction strength supported by the residential channel. In 2021, we expect EBITDA margin to expand 110 bps to 27.4%, aided by ITW's enterprise initiatives. We forecast top-line growth of 9%-10% in 2021 and an additional 6%-7% in 2022.