Analyst Insights: Price Targets and Ratings for Illinois Tool Works (NYSE: ITW)

• JPMorgan downgraded Illinois Tool Works (NYSE: ITW) from Overweight to Neutral and lowered its price target from $350.00 to $277.00.
• Before the latest downgrade, 13 brokerages had assigned Illinois Tool Works an average “Reduce” rating and a $282.00 average 12-month price target.
• Illinois Tool Works stock recently gained 1.36% to close at $264.71, within a 52-week range of $238.82 to $303.16.

Illinois Tool Works (NYSE: ITW) is a diversified industrial manufacturer serving markets that include automotive production, construction, food equipment, welding, electronics, and specialty products. JPMorgan recently downgraded the stock from Overweight to Neutral and lowered its price target from $350.00 to $277.00. At the closing price of $264.71, the revised target implies approximately 4.64% upside.

A price target represents an analyst's estimate of where a stock may trade over a specified period and does not guarantee future performance. JPMorgan said the downgrade reflected its cautious outlook for short-cycle industrial companies, limited potential for positive earnings-estimate revisions, and a valuation that appears fair at current levels.

Before JPMorgan's latest downgrade, a report covering 13 brokerages listed an average 12-month price target of $282.00 for Illinois Tool Works. That target implies approximately 6.53% upside from the stock's $264.71 closing price. The report also assigned the stock an overall “Reduce” consensus rating, based on five sell ratings, six hold ratings, and two buy ratings.

Other analysts have also recently revised their targets. Truist Financial lowered its price target from $308.00 to $297.00 while maintaining a Hold rating. Robert W. Baird raised its target from $278.00 to $297.00 and maintained a Neutral rating.

JPMorgan's latest decision reverses its previous move in July, when it raised its Illinois Tool Works price target from $310.00 to $350.00 and maintained an Overweight rating.

Illinois Tool Works shares gained $3.56, or 1.36%, to close at $264.71. The stock's 52-week trading range is $238.82 to $303.16.