Investing.com – Wolfe Research upgraded ITT Corp. (NYSE:ITT) to Outperform from Peerperform on Thursday and set a price target of $229.00. The stock currently trades at $185.33, about 18% below its 52-week high of $225.26, though InvestingPro analysis suggests the shares may be overvalued at current levels.
The firm noted that ITT shares have gained 6% year-to-date, trailing the 8% rise in Wolfe’s electrical equipment and multi-industry coverage and the 9% advance in the S&P 500. Much of the relative underperformance has occurred since the company’s first-quarter earnings report in May.
ITT’s current next-twelve-months multiples of 22 times price-to-earnings and 15 times enterprise value-to-EBITDA are in line to slightly below year-end 2025 levels, following the March closing of the SPX FLOW acquisition. The stock trades at a 4% discount on EV-to-EBITDA relative to electrical equipment and multi-industry peers, matching the one-year median. The company’s actual trailing P/E stands at 32.81, reflecting what InvestingPro identifies as a high earnings multiple, though the company has delivered strong returns over the last decade.
Wolfe’s updated 2026 earnings per share estimate of $7.93 sits near the high end of ITT’s $7.70 to $8.00 guidance range. The firm said its embedded 22% incremental margins could prove conservative given approximately 150 to 200 basis points of pricing for the year.
For 2027, Wolfe’s estimates are approximately 1% ahead of consensus on EPS and 0.5% ahead on revenue. The firm said additional upside could come from SPX FLOW accretion, end market recoveries in industrial process and connect and control technologies segments, and continued strong outperformance versus auto builds in the motion technologies segment. For deeper insights into ITT’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available for ITT and 1,400+ other US equities, featuring expert analysis and actionable intelligence.
In other recent news, ITT Inc. reported strong financial results for the first quarter of 2026, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.98, exceeding the forecasted $1.72, and reported revenue of $1.2 billion, above the anticipated $1.12 billion. Additionally, ITT completed the acquisition of Aerospace Contacts LLC for $31 million, a company specializing in precision contacts for aerospace and defense applications.
This acquisition follows the signing of a definitive agreement to purchase Aerospace Contacts, which operates a manufacturing facility in Arizona. In analyst updates, DA Davidson raised its price target for ITT to $255, maintaining a Buy rating due to the company’s strong execution. The firm adjusted its future estimates to account for the SPX FLOW acquisition and related changes.
Meanwhile, Stifel analysts noted accelerating economic indicators in Europe, which could influence ITT’s market exposure. These developments underscore ITT’s strategic growth and financial performance in the current economic climate.
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