In a report released yesterday, Joe Ritchie from Goldman Sachs maintained a Buy rating on ITT, with a price target of $223.00.
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Joe Ritchie has given his Buy rating due to a combination of factors that highlight ITT’s strong market position and growth potential. The management at ITT emphasized the robust short-cycle conditions in their Industrial Process (IP) and Connect and Control Technologies (CCT) segments, with a notable demand surge in Motion Technologies (MT) driven by China and the adoption of electric vehicles. Additionally, there is a sequential improvement in the project funnel, which suggests a promising outlook for future projects.
Furthermore, ITT’s margin progression is supported by strategic pricing, productivity enhancements, and a reset of the Boeing contract in CCT, which is expected to contribute significantly to margin expansion. The company has set ambitious targets for 2026, focusing on organic outperformance and cash generation, with long-term margin goals for their segments. These factors, combined with a strong supplier base and consistent productivity improvements, underpin the positive outlook and justify the Buy rating.
ITT’s price has also changed moderately for the past six months – from $150.800 to $180.590, which is a 19.75% increase.