Citi maintains ITT stock Buy rating, $159 target amid growth levers

Published 15/05/2025, 16:18
Citi maintains ITT stock Buy rating, $159 target amid growth levers

On Thursday, Citi analyst Vladimir Bystricky confirmed a Buy rating and a $159.00 price target for ITT Corp. (NYSE:ITT), following the company’s announcement of new financial goals for 2030. The announcement was made in conjunction with ITT’s Capital Markets Day, held on May 15th. According to InvestingPro data, nine analysts have recently revised their earnings estimates upward, with price targets ranging from $141 to $182.

The newly set targets suggest that ITT is expected to leverage a variety of growth mechanisms. Bystricky highlighted that the company’s focus on both organic and inorganic growth opportunities, coupled with ongoing improvements within the company itself, should sustain an above-average growth in revenue and earnings over time. The company has demonstrated strong execution, with revenue growing 7% over the last twelve months and maintaining dividend payments for 55 consecutive years, as reported by InvestingPro.

ITT’s aim for a 5%+ organic compound annual growth rate (CAGR) surpasses the analyst’s own model, which predicts approximately 4% growth over the next few years. Additionally, the company’s goal for roughly 10% total annual revenue increase, including acquisitions, could potentially rank ITT among the leading industrial compounders if these targets are met.

The updated adjusted operating margin and free cash flow (FCF) margin goals align with ITT’s commitment to continuous improvement. Bystricky believes these targets are indicative of ITT’s strategy to enhance shareholder value in the forthcoming years. The analyst’s outlook reflects confidence in ITT’s capacity to achieve its stated financial objectives and drive strong performance in the market.

In other recent news, ITT Inc. reported its first-quarter 2025 earnings, with adjusted earnings per share (EPS) of $1.45, slightly exceeding the forecast of $1.43. Revenue for the quarter was $913 million, aligning with expectations but showing no growth compared to the previous year. DA Davidson maintained a Buy rating for ITT, with a price target of $170, highlighting the company’s strong performance in profitability and cash flow. During its 2025 Capital Markets Day, ITT outlined ambitious financial targets for 2030, aiming for more than 5% average annual organic revenue growth and a total of approximately 10% with acquisitions. The company plans to invest $500-700 million annually in acquisitions, contributing an estimated additional $0.75 to $1.00 of EPS. ITT also introduced Vidar, a new industrial motor technology designed to enhance efficiency and reduce costs. The company maintained its full-year adjusted EPS guidance at $6.30, expecting organic revenue growth of 3-5% and free cash flow close to $500 million for the year. Analyst firm DA Davidson reaffirmed its confidence in ITT’s potential, citing the company’s inclusion in its Best-of-Breed Bison initiative.

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