Illinois Tool Works "buy," estimates raised

07/25/05 - BB&T Capital Markets

NEW YORK, July 25 (newratings.com) - Analysts at BB&T Capital Markets reiterate their "buy" rating on Illinois Tool Works (ITW), while raising their estimates for the company. The 12-month target price is set to $105.

In a research note published on July 22, the analysts mention that the company has reported its 2Q05 EPS ahead of the estimates and the consensus primarily due to a low tax rate. Illinois Tool Works raised its recently reduced EPS guidance for 2005 from $4.90–$5.00 to $5.02–$5.14 on account of the robust performance of the Leasing & Investments segment, a decline in outstanding shares 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.