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On Tuesday, DA Davidson analyst Matt Summerville increased the price target for ITT Corp. (NYSE:ITT) to $170 from a previous target, while reiterating a Buy rating on the shares. The new price target represents Summerville’s confidence in the company’s ability to continue its market outperformance, citing share gains and healthy price capture as key drivers. According to InvestingPro data, ITT has demonstrated strong momentum with a 20.4% return over the past year, though current analysis suggests the stock may be trading above its Fair Value.
Summerville noted that despite facing cyclical challenges in the automotive markets of Europe, the Middle East, and Africa (EMEA) and North America (NA), ITT is well-positioned for another year of significant market outperformance. The company’s recent performance supports this view, with InvestingPro showing revenue growth of 10.59% and a healthy gross profit margin of 34.35%. The analyst highlighted that ITT’s Motion Technologies (MT) segment is expected to continue its strong performance, while the Industrial Process (IP) and Connect and Control Technologies (CCT) segments are anticipated to have potential upside against conservative guidance.
The analyst underlined ITT’s robust balance sheet, which allows for strategic internal investments, mergers and acquisitions (M&A), and share repurchases. According to Summerville, these factors contribute to ITT’s solid financial foundation and support the company’s growth prospects.
Summerville also mentioned that while the earnings estimates for 2025 and 2026 have been adjusted slightly lower, the firm’s outlook on ITT remains positive, as reflected in the reiterated Buy rating and the increased price target.
ITT Corp., known for its diversified portfolio of engineered critical components and customized technology solutions, is expected to leverage its strong market position and financial health to drive future growth and shareholder value.
In other recent news, ITT Inc. reported an impressive Q4 earnings beat, along with a 10% rise in its quarterly dividend. ITT’s Q4 adjusted earnings per share stood at $1.50, surpassing the analyst consensus of $1.48. However, the company’s revenue of $929 million fell slightly short of the expected $930.71 million. These results reflect a significant 12% revenue increase compared to the same quarter last year, attributed to higher volume, pricing actions, and recent acquisitions.
Operating income saw a substantial 35% year-over-year increase to $160 million, with an operating margin expansion of 290 basis points to 17.2%. As part of recent developments, ITT anticipates an adjusted earnings per share of $6.10 to $6.50 for the full year 2025, compared to the analyst consensus of $6.49. The company also projects a revenue growth of 2% to 4%, or 3% to 5% organically.
In a noteworthy move, ITT announced its decision to raise its quarterly dividend by 10% to $0.351 per share, marking the third consecutive year of 10% dividend increases.
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