ITW - Illinois Tool Works is tagged as a sell idea at Deutsche Bank

Illinois Tool Works (NYSE:ITW) traded slightly lower on Thursday after Deutsche Bank fired off a Catalyst Call Sell Idea on the industrial tools stock. Analyst Nicole DeBlase: "ITW is undoubtedly a difficult stock to be negative on, and has been for some time now. However, we already thought the company's full year EPS guidance looked aggressive post-4Q earnings season, well before new macro headwinds emerged. To this point, the company has the highest exposure to auto production to within our coverage universe (>25% of sales), and is also likely facing incremental price/cost driven margin headwinds on the back of recent inflation in both resins and stainless steel - both important for ITW, more so than other companies we cover." In addition, DeBlase and team noted that ITW continues to trade at a material 17% premium to its peer group, which is seen leaving little room for multiple expansion. See all

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Illinois Tool Works is tagged as a sell idea at Deutsche Bank