Bank of America Securities analyst Andrew Obin has maintained their neutral stance on ITW stock, giving a Hold rating on April 15.
Andrew Obin has given his Hold rating due to a combination of factors impacting Illinois Tool Works. One key reason is the potential operational risks stemming from the automotive and consumer-facing segments, although the company has a foreign exchange cushion that could mitigate these challenges. Despite these headwinds, Obin anticipates that the company’s first-quarter earnings will align with expectations and could serve as a positive catalyst, as ITW is unlikely to revise its guidance downward.
Additionally, ITW’s consistent track record of margin expansion, with incremental margins reaching 46% since 2016, supports the Hold rating. The company has managed to maintain strong margins even in challenging years like 2020 and 2022. Furthermore, ITW’s significant exposure to Europe could benefit from a potential economic recovery in the region, providing a tailwind for sales and earnings. Overall, while there are risks, the company’s strategic positioning and financial resilience justify maintaining a neutral stance.
In another report released on April 15, Robert W. Baird also maintained a Hold rating on the stock with a $239.00 price target.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ITW in relation to earlier this year.