Illinois Tool Works Inc
ITW: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$917.00 | Pjrvx | Xsvbfqdss |
Illinois Tool Works Earnings: Enterprise Initiatives Drive Strong Margin Expansion
We raise our fair value estimate for narrow-moat Illinois Tool Works to $211 from $203 following strong third-quarter results. The raise was due to about a 20-basis-point rise in our midcycle margin and slightly higher stage-two growth. While Illinois Tool Works’ stock historically trades at a premium to our fair value, we think it now trades within a realm of reasonableness. We value ITW at 19 times our estimated 2024 GAAP EPS.