Joe O’Dea, an analyst from Wells Fargo, maintained the Sell rating on Illinois Tool Works (ITW – Research Report). The associated price target remains the same with $230.00.
Joe O’Dea has given his Sell rating due to a combination of factors including the company’s struggle with flat organic growth and declining performance in key segments. The report highlights that Illinois Tool Works is facing challenges with its revenue and margin expectations, particularly with a notable decline in the Auto OEM and Construction Products segments. Despite some positive developments such as FX tailwinds, these are not sufficient to offset the broader demand risks and margin pressures.
Additionally, the company’s first-quarter performance showed significant shortfalls in the Test & Measurement and Electronics segments, which were below expectations. The downward revision of the earnings per share estimate for 2025 further underscores the cautious outlook. These factors, combined with the anticipated challenges in the auto industry and construction sector, contribute to the Sell rating as the company navigates a tough competitive and economic environment.
ITW’s price has also changed slightly for the past six months – from $264.330 to $239.910, which is a -9.24% drop .