- ITW -0.72%
Illinois Tool Works Inc. (NYSE:ITW) is included among the 15 High Quality Dividend Stocks for Long-Term Investors.
BofA Raises ITW Price Target as Margins Reach Record Levels On November 18, BofA analyst Andrew Obin upgraded Illinois Tool Works Inc. (NYSE:ITW) to Neutral from Underperform, raising the price target to $255 from $220. The analyst noted that strong year-over-year margin expansion is expected in 2026, which should help EPS growth keep pace with industry peers through 2026–2027.
In its third-quarter 2025 results, Illinois Tool Works Inc. (NYSE:ITW) reported a record operating margin of 27.4%, up 90 basis points, with enterprise initiatives contributing 140 basis points. Operating cash flow reached $1.0 billion, while free cash flow rose 15% to $904 million, translating to a 110% conversion rate relative to net income. The company highlighted progress on its strategic growth priorities and reaffirmed its commitment to above-market organic growth driven by customer-backed innovation. Management indicated that the strategy remains on track to meet 2030 performance goals, including a customer-backed innovation yield exceeding 3%.
For FY25, Illinois Tool Works Inc. (NYSE:ITW) maintained its operating margin guidance of 26% to 27%, with enterprise initiatives expected to contribute 125 basis points for the year. Management reiterated confidence in achieving the $10.45 midpoint EPS target.
Illinois Tool Works Inc. (NYSE:ITW) is a global industrial manufacturer that produces a wide range of value-added products, including engineered fasteners, equipment, and specialty items.
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