JPMorgan analyst Tami Zakaria lowered the firm’s price target on Illinois Tool Works to $280 from $285 and keeps an Overweight rating on the shares. Investors are expecting a miss in Q1, and JPMorgan is below consensus as well, but the firm does not expect a fiscal 2024 guidance cut, the analyst tells investors in a research note. The firm expects a gradual improvement in organic growth and EBIT margin going forward. With Illinois Tool Works’ organic growth expected to remain subdued in the near term, the stock’s valuation “will remain capped,” but the shares will get a chance to regain the relative valuation premium later this year if organic growth accelerates in the second half of 2024 as implied in the current outlook, contends JPMorgan.
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