ITW - Illinois Tool Works falls after Deutsche Bank turns bearish

Deutsche Bank downgraded Illinois Tool Works ( NYSE: ITW ) to a Sell rating from Hold on what it sees as a huge earnings multiple premium with no compelling thesis to back it.

Analyst Nicole DeBlase: "We commend the company for the massively successful execution of its Enterprise Strategy over the course of 2012-17, which saw margins increase nearly 700bps, in excess of management's own external goals. But today, we struggle to form an attractive, clear medium-term narrative to justify the stock's premium valuation. Medium-term narrative is difficult to identify."

ITW is called at its core a disparate collection of mostly GDP-type growth businesses. Deutsche Bank is not convinced that broad-based, sustainable share gain is happening.

The German firm assigned a price target of $188 to ITW, which is well below the average PT on Wall Street of $202.82.

Shares of ITW fell 2.06% premarket to $212.99.

Read the latest breakdowns on Illinois Tool Works from Seeking Alpha authors.

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