05:35 AM EDT, 05/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We trim our 12-month target to $235 from $240, valuing shares at 22x our 2025 EPS outlook ($10.68, down $0.06; 2024 EPS lifted by $0.11 to $10.21), a slight discount to ITW's five-year historical forward P/E average. ITW posted operating Q1 EPS of $2.44 (up 5% Y/Y), beating consensus by $0.08. Sales fell 1% Y/Y, driven by modest organic contraction in five out of seven of ITW's operating segments as the demand environment remains challenged amid higher interest rates. Despite the dip in sales, we still forecast modest top-line expansion as 2H 2024 poses an easier Y/Y comparison. Given ITW's broad exposure to cyclical global markets, we see growth staying lukewarm, assuming interest rates remain in constrictive territory. ITW is focusing on margin quality while demand remains sluggish in the near term. Operating margins expanded by 120 bps Y/Y, primarily supported by enterprise initiatives. Despite progress on profitability, we see revenue and earnings expansion trailing a majority of machinery peers.