In a report released today, Joe Ritchie from Goldman Sachs maintained a Buy rating on ITT (ITT – Research Report), with a price target of $136.00.
Joe Ritchie has given his Buy rating due to a combination of factors that highlight the solid performance and promising outlook of ITT Inc. He notes that ITT’s first-quarter segment EBIT outperformed expectations from both Goldman Sachs and FactSet by 7% and 5%, respectively, with sales and EBIT figures surpassing the consensus. Across ITT’s portfolio, there was evident strength, underscored by a year-over-year organic order increase of 7% and a book-to-bill ratio across the enterprise of 1.07. Ritchie emphasizes the particularly impressive order growth in Aerospace & Defense components, Rail, and Connectors, which saw surges of 28%, 37%, and 24%, respectively.
Moreover, Ritchie points to the robust beginning to the year, with an adjusted EPS growth of 21%, which supports the company’s outlook for the full year, suggesting a potential 13% growth in EPS at the high end. Importantly, he notes that this guidance does not factor in any future mergers and acquisitions, while the management plans to deploy significant capital towards such activities. With these factors in mind, Ritchie has increased his EPS estimates for the following three fiscal years and maintains a Buy rating based on ITT’s unique market position and consistent track record of margin improvement. He suggests that the current market dip offers an attractive entry point for investors, with his price target implying a favorable future free cash flow yield.
According to TipRanks, Ritchie is a 5-star analyst with an average return of 14.5% and a 64.65% success rate. Ritchie covers the Industrials sector, focusing on stocks such as Dover, Eaton, and Honeywell International.
In another report released on April 17, Stifel Nicolaus also maintained a Buy rating on the stock with a $150.00 price target.
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ITT (ITT) Company Description:
ITT, Inc. engages in the manufacture and sale of engineered components and customized technology solutions in the field of energy, transportation, and industrial markets. It operates through the following segments: Motion Technologies, Industrial Process, and Connect and Control Technologies. The Motion Technologies segment manufactures brake components and specialized sealing solutions, shock absorbers and damping technologies primarily for the global automotive, truck and trailer, public bus and rail transportation. The Industrial Process segment includes engineered fluid process equipment in areas such as chemical, oil and gas, mining, and other industrial process markets as well as providing of plant optimization and efficiency solutions and aftermarket services and parts. The Connect and Control Technologies segment offers harsh-environment connector solutions and critical energy absorption and flow control components for the aerospace and defense, general industrial, medical, and oil and gas markets. The company was founded in 1920 and is headquartered in White Plains, NY.
