Analysts Downgrade Ratings for Illinois Tool Works Stock

Analysts are expressing mixed sentiments toward Illinois Tool Works (NYSE: ITW), as 12 recent ratings show a predominance of indifference with some bearish tendencies. This could influence investor confidence and thus impact stock prices.

Date: 11-03-2025

AI Rating: 5

Insights from Analyst Ratings: Analysts have provided varying opinions on Illinois Tool Works, reflecting a broader market sentiment. The current tally shows that while there was one bullish rating, seven are indifferent, with three showing somewhat bearish tendencies.

Over the last month, there has been little positive movement, with reports indicating no recent bullish ratings, suggesting a cautionary stance from analysts.

Price Target Trends: Analysts offered a current average 12-month price target of $267.08, lower than the previous target of $270.75, representing a downward shift in expectations. The disparity between the high estimate at $318.00 and the low at $245.00 suggests analysts have mixed opinions about the stock’s potential moving forward.

Financial Performance Indicators: The analysis indicates the following financial data:

Revenue Growth: Illinois Tool Works has faced challenges, reporting a revenue decline of approximately -1.28% over the past three months. This decline is significant as it falls short when compared to industry peers.
Net Margin: With a net margin of 19.07%, the company appears to manage costs efficiently and maintains a strong profitability position relative to its counterparts.
Return on Equity (ROE): The company boasts a ROE of 22.36%, suggesting effective utilization of equity capital and strong returns for shareholders.

Despite the solid metrics, the reported financial challenges in revenue growth may raise concerns among investors. Additionally, the higher than average debt-to-equity ratio of 2.44 brings to light potential financial risks that require investors’ attention.

Stocks: ITW