S&P Capital IQ Downgrades Illinois Tool Works from BUY to HOLD

October 28 00:00 2011

New York, October 28 (RainbowNewsLine.com) – Analyst Richard Tortoriello of S&P Capital IQ downgrades Illinois Tool Works (NYSE: ITW) from BUY to HOLD, while reducing his estimates for the company. The 12-monthe target price has been reduced from $60 to $52.

Analyst Richard Tortoriello, in a research report published yesterday mentions that the company has reported its Q3 EPS in line with the estimates reflecting 6% organic revenue growth of 6%. The operating margins have declined by 10bps to 15.6%. The company’s exposure to Europe would affect its near term performance, the analyst says. The EPS estimates for 2011 and 2012 have been reduced from $3.89 to $3.87 and from $4.40 to $4.15, respectively, due to slow organic growth in Q4 and slow global economic growth.