ITT stock target increased, keeps Overweight on strong performance

Published 21/01/2025, 15:42
ITT stock target increased, keeps Overweight on strong performance

On Tuesday, KeyBanc Capital Markets adjusted its outlook on shares of ITT Corp. (NYSE:ITT), increasing the price target to $170 from the previous $164, while reiterating an Overweight rating on the stock. This revision reflects the firm's anticipation of continued strong performance from ITT into the fourth quarter of 2024 and the year ahead.

Jeffrey Hammond, an analyst with KeyBanc, expressed confidence in ITT's ability to sustain its recent trend of execution excellence and market outperformance. Despite expecting challenging comparisons for Industrial Process (IP) orders in 2025, Hammond predicts that ITT's project funnel for longer-cycle endeavors and short-cycle pump order activities will remain vigorous, driving organic growth throughout 2025.

ITT's Motion Technologies segment has notably surpassed market performance year-to-date by approximately 700 basis points. The analyst anticipates this trend will persist, along with potential improvements in margin performance.

Moreover, the resolution of recent Boeing (NYSE:BA) strikes, which likely impacted sales by around $10 million, and the renegotiation of a long-term contract with the aerospace giant are expected to contribute positively to ITT's pricing power in the second half of 2025.

Hammond's outlook also takes into account the near-term challenges faced by the global Automotive Original Equipment sector. Despite these headwinds, ITT's Motion Technologies division has achieved significant market outperformance, suggesting resilience and the potential for continued success.

The analyst's comments underscore a positive forecast for ITT Corp., with strategic maneuvers such as contract renegotiations and robust order activities laying the groundwork for future growth and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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