Illinois Tool Works "outperform," target price reduced

06/16/05 - Robert W. Baird

NEW YORK, June 16 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on Illinois Tool Works Inc (ITW), while reducing their estimates for the company. The target price has been reduced from $110 to $109.

In a research note published this morning, the analysts mention that the company has reduced its guidance for the near term on account of lower-than-expected organic growth in the first couple of months of the quarter, the weakening euro and the volatile European macroeconomic environment. The analysts expect these headwinds to lessen over the remainder of the year. The current valuation of Illinois Tool Works’ stock is attractive, Robert W Baird adds. The EPS estimate for FY06 has been reduced from $5.80 to $5.75.