Strategic M&A and Organic Growth Drive ITT’s Buy Rating with Raised Price Objective

Andrew Obin, an analyst from Bank of America Securities, reiterated the Buy rating on ITT (ITT – Research Report). The associated price target was raised to $170.00.

Andrew Obin has given his Buy rating due to a combination of factors including ITT’s strategic focus on mergers and acquisitions (M&A) and its commitment to achieving strong organic growth. ITT has set ambitious targets for organic earnings per share (EPS) growth, aiming for a 12% compound annual growth rate from 2025 to 2030, which is a significant increase from previous years. The company’s emphasis on enhancing its M&A capabilities, alongside its focus on pricing and customization, positions it well to achieve best-in-class margins.
Furthermore, ITT’s target of achieving a return on invested capital (ROIC) of over 10% by the third to fifth year on acquisitions is seen as ambitious but attainable. The company plans to allocate substantial capital towards acquisitions annually, demonstrating its commitment to growth through strategic investments. These factors, combined with ITT’s strong execution and improving business quality, justify the raised price objective to $170 and support the Buy recommendation.

In another report released on May 19, TD Cowen also maintained a Buy rating on the stock with a $170.00 price target.