Illinois Tool Works "buy," target price reduced

06/17/05 - BB&T Capital Markets

NEW YORK, June 17 (newratings.com) - Analysts at BB&T Capital Markets reiterate their "buy" rating on Illinois Tool Works Inc (ITW), while reducing their estimates for the company. The 12-month target price has been reduced from $109 to $105.

In a research note published yesterday, the analysts mention that the company's sales for the three months ended May increased by 10%. Illinois Tool Works has reduced its EPS guidance for 2005 from $5.06-$5.20 to $4.90-$5.00 on account of the slower-than-expected revenue growth. The EPS estimates for 2005, 2006 and 2007 have been reduced from $5.10 to $4.95, from $5.70 to $5.60 and from $6.30 to $6.20, respectively.