Breaking Down Illinois Tool Works: 12 Analysts Share Their Views

Ratings for Illinois Tool Works (NYSE:ITW) were provided by 12 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	1	0	9	2	0
Last 30D	0	0	0	1	0
1M Ago	1	0	3	0	0
2M Ago	0	0	5	0	0
3M Ago	0	0	1	1	0

In the assessment of 12-month price targets, analysts unveil insights for Illinois Tool Works, presenting an average target of $247.08, a high estimate of $284.00, and a low estimate of $227.00. Observing a downward trend, the current average is 3.8% lower than the prior average price target of $256.83.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Illinois Tool Works. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
David Raso	Evercore ISI Group	Lowers	Underperform	$249.00	$252.00
Nathan Jones	Stifel	Raises	Hold	$233.00	$227.00
Julian Mitchell	Barclays	Lowers	Equal-Weight	$237.00	$240.00
Jamie Cook	Truist Securities	Lowers	Buy	$284.00	$302.00
Mig Dobre	Baird	Raises	Neutral	$244.00	$239.00
Andrew Kaplowitz	Citigroup	Lowers	Neutral	$253.00	$265.00
Nathan Jones	Stifel	Lowers	Hold	$227.00	$259.00
Julian Mitchell	Barclays	Lowers	Equal-Weight	$240.00	$252.00
Steven Fisher	UBS	Lowers	Neutral	$234.00	$269.00
Julian Mitchell	Barclays	Lowers	Equal-Weight	$252.00	$260.00
Julian Mitchell	Barclays	Lowers	Equal-Weight	$260.00	$262.00
David Raso	Evercore ISI Group	Lowers	Underperform	$252.00	$255.00

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Illinois Tool Works. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Illinois Tool Works compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Illinois Tool Works's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Illinois Tool Works's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Illinois Tool Works analyst ratings.

Get to Know Illinois Tool Works Better

Founded in 1912, Illinois Tool Works has become a diversified industrial manufacturer through acquisitions and innovations that follow customer needs. ITW operates through seven business segments, with no segment representing more than one fifth of revenue. ITW's automotive OEM segment sells vehicle components; its food equipment segment sells commercial kitchen appliances; its test & measurement and electronics segment sells inspection and analysis equipment; its welding segment sells welding equipment and consumables; its polymers & fluids segment sells industrial and consumer adhesives, solvents, and coatings; its construction products segment sells building fasteners and tools; and its specialty products segment sells medical, packaging, HVAC, and airport ground equipment.

Financial Milestones: Illinois Tool Works's Journey

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Decline in Revenue: Over the 3M period, Illinois Tool Works faced challenges, resulting in a decline of approximately -3.37% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Illinois Tool Works's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 18.23% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Illinois Tool Works's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 21.35%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Illinois Tool Works's ROA excels beyond industry benchmarks, reaching 4.58%. This signifies efficient management of assets and strong financial health.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.55, caution is advised due to increased financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.