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Research Alert: CFRA Keeps Buy Opinion On Shares Of Itt Inc.

05/07/2021 11:54

03:50 PM EDT, 05/07/2021 (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 lift our 12-month target price to $113 from $98, valuing the shares at 28.8x our 2021 EPS estimate of $3.92 (increased $0.22), in line with peers' forward average of 27.8x and at the top end of ITT's three-year forward range based on our outlook for continued market share gains as well as benefits from above-peer growth in global automotive markets. We maintain our 2022 EPS estimate at $4.15. ITT posts Q1 EPS of $1.06 vs. $0.80, beating our $0.87 estimate. Revenue rose 5% in Q1, supported by 17% organic growth in Motion Technologies. ITT's strength in automotive is driving recovery, and we expect continued share gains in Friction. We expect the short cycle business to remain soft in 2021 and commercial aerospace will likely remain soft for a few years as the sector faces a long road to recovery. In 2021, we forecast 6%-8% revenue growth and 100 bps of EBITDA margin expansion to 19.9%. In 2022, we forecast an additional 8%-10% growth in revenue and 80 bps of EBITDA margin expansion to 20.7%.