- ITT posted better than expected revenue and margins in the fourth quarter, with particular strength in Motion Technologies, but guidance for '21 looked a touch conservative.
- Motion Tech remains the sizzle to the story, as the company continues to gain share on established platforms and new EV/hybrid programs.
- Aerospace, chemicals, and oil/gas will still be under pressure in 2021 (collectively one-third of sales), but all should start seeing better demand in the second half.
- ITT's outperformance has shrunk the relative discount, but I believe there's still a "first among equals" argument for owning ITT, particularly with more self-help and M&A opportunities.
For further details see:
ITT Executing Well, But The Bull Case Has Become The Base Case