Illinois Tool Works "overweight," estimates raised

07/25/05 - Prudential Financial

NEW YORK, July 25 (newratings.com) - Analyst Andrew M Casey of Prudential Financial reiterates his "overweight" rating on Illinois Tool Works (ITW), while raising his estimates for the company. The target price is set to $100.

In a research note published on July 22, the analyst mentions that the company reported its 2Q05 EPS ahead of the estimates and the consensus, primarily due to robust revenues. Illinois Tool Works has raised its recently reduced EPS guidance for 2005 on account of the impressive 2Q results, the robust performance of the Leasing & Investments segment and a low tax rate. The EPS estimates for 2005 and 2006 have been raised from $4.95 to $5.10 and from $5.60 to $5.70, respectively.