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On Monday, TD Cowen exhibited confidence in ITT Corp. (NYSE:ITT) by adjusting its price target upwards to $170 from the previous $165, while reiterating a Buy rating on the stock. Currently trading at $152.40, ITT has attracted positive attention from analysts, with targets ranging from $141 to $182. The adjustment follows ITT’s recent articulation of its long-term strategy, which the firm believes underscores the company’s transition and growth potential. According to InvestingPro data, nine analysts have recently revised their earnings estimates upward for the upcoming period.
Joseph Giordano of TD Cowen highlighted ITT’s "2030 Vision," which focuses on achieving growth through innovation and strategic mergers and acquisitions. Giordano noted that ITT has already been moving towards this strategic direction. The company’s shift from a set of independently cyclical businesses to a well-managed portfolio with thematic foundations has been recognized, as reflected in the positive performance of its shares. This transformation is supported by ITT’s strong financial health, earning a "GREAT" overall score from InvestingPro’s comprehensive analysis system.
According to Giordano, ITT’s balance sheet is clean and primed for deployment, supporting the company’s strategy to become a "compounder" – a term used for companies that can grow their earnings at an above-average rate consistently. The company operates with a moderate debt level and maintains a healthy current ratio of 1.19. With revenue of $3.63 billion and a robust gross profit margin of 34.7%, ITT has demonstrated its ability to generate substantial cash flow. The analyst’s commentary suggests a belief that ITT is well-positioned to capitalize on its strategic initiatives and deliver sustained growth.
The new price target of $170 represents TD Cowen’s expectation for ITT’s stock value in light of the company’s clarified strategy and operational evolution. ITT’s management has evidently made strides in realigning the business to better leverage market opportunities and drive shareholder value, as evidenced by its 55-year track record of maintaining dividend payments and 12 consecutive years of dividend increases.
Giordano’s analysis points to ITT’s proactive approach in redefining its business model and investment strategy. This approach appears to be resonating with investors, as ITT’s stock continues to be re-rated, indicating a market consensus on its growth trajectory and investment appeal. Based on InvestingPro’s Fair Value analysis, the stock is currently trading above its estimated Fair Value, suggesting investors should carefully consider their entry points. For deeper insights into ITT’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, ITT Corp. reported its first-quarter 2025 earnings, revealing an adjusted earnings per share (EPS) of $1.45, slightly exceeding the forecast of $1.43. The company’s revenue for the quarter was $913 million, meeting expectations but showing no year-over-year growth. During ITT’s Capital Markets Day, the company set ambitious 2030 financial targets, aiming for more than 5% average annual organic revenue growth and a total of approximately 10% with acquisitions. ITT plans to invest between $500-700 million annually in acquisitions, which are expected to contribute significantly to its earnings per share by 2030.
Stifel analysts raised their price target for ITT shares to $171, maintaining a Buy rating, reflecting optimism about ITT’s long-term strategic goals and acquisition strategy. Similarly, Citi analyst Vladimir Bystricky reiterated a Buy rating with a $159 price target, emphasizing ITT’s focus on organic and inorganic growth opportunities. DA Davidson also maintained a Buy rating and a $170 price target, recognizing ITT as part of its Best-of-Breed Bison initiative for top-performing companies.
ITT’s recent technological advancements were highlighted during the Capital Markets Day, including the introduction of the VIDAR industrial motor, designed to enhance efficiency and reduce operating costs. Analysts have expressed confidence in ITT’s capacity to achieve its financial objectives and drive strong performance in the market.
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