Street Calls of the Week
Investing.com - BofA Securities raised its price target on ITT Corp. (NYSE:ITT) to $210 from $190 while maintaining a Buy rating on the stock. The stock, currently trading near its 52-week high of $180.59, has demonstrated strong momentum with a 34% return over the past six months, according to InvestingPro data.
The price target adjustment, representing approximately 17% potential upside, follows an investor meeting held on September 15 with ITT CEO and President Luca Savi and VP of Investor Relations and Global Communications Mark Macaluso. InvestingPro analysis indicates the company maintains a "GREAT" financial health score, with management actively buying back shares.
Despite acknowledging macroeconomic uncertainty, BofA Securities noted that ITT remains confident in its growth prospects, with the aerospace and defense, automotive, and oil and gas sectors showing the strongest visibility.
The research firm highlighted that ITT has multiple levers for margin expansion despite the uncertain macro environment, with capital allocation being a key topic during the investor meeting, consistent with themes from ITT’s recent investor day.
BofA Securities based its new price target on 18x 2026 estimated EV/EBITDA, representing a premium to peers trading at 14x 2025 estimates, citing ITT’s EPS growth as "well above peers" with expectations for positive revisions in 2025 and 2026.
In other recent news, ITT Inc. reported its second-quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share of $1.64, exceeding the forecast of $1.61. Revenue also outperformed projections, reaching $972.4 million compared to the anticipated $948.2 million. Additionally, KeyBanc Capital Markets raised its price target for ITT to $200 from $192, maintaining an Overweight rating. This adjustment follows a visit to ITT’s Friction Technologies manufacturing plant in Barge, Italy, which KeyBanc described as "world-class." These developments reflect ongoing positive sentiment towards ITT’s operations and future prospects.
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