ITT (ITT): Assessing Valuation as Acquisitions Drive Fresh Growth and Business Momentum

ITT (ITT) has seen renewed momentum this quarter, with increased demand in its Industrial Process segment and stronger sales due to recent acquisitions such as kSARIA. Acquisitions accounted for 6% of sales, confirming ITT's ongoing expansion approach.

See our latest analysis for ITT.

ITT’s growth story is evident in its stock performance as well, with steady share price gains and a current price of $181.55 reflecting stronger fundamentals and strategic acquisitions. The 1-year total shareholder return of 25% suggests real momentum, supported by recent expansion moves and healthy demand across key segments.

If industrial momentum and smart acquisitions have your attention, this could be the perfect moment to explore fast growing stocks with high insider ownership.

Yet with ITT’s rapid gains and analyst price targets only modestly above the current level, the question is whether there is still untapped value here or if the market has already factored in all the future growth.

Most Popular Narrative: 4.6% Undervalued

ITT’s current share price of $181.55 is below the narrative’s fair value of $190.25, suggesting a modest upside according to the broadest analyst projections. This view is built on real business momentum, with recent deals and operating gains driving confidence that value remains untapped.

Recent and future bolt-on acquisitions (such as Svanehøj, kSARIA, and Habonim) are exceeding targets and integrating quickly. They are forecasted to deliver significant incremental revenue and annual margin improvement, accelerating both top line and EPS growth.

Read the complete narrative.

Want to know what lies behind that bullish fair value? The narrative’s secret ingredients are aggressive growth, margin ambitions, and a financial outlook that could challenge industry leaders. Ever wondered how far these assumptions can stretch? Unlock the details and see if this outlook really adds up.

Result: Fair Value of $190.25 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, mounting project-based revenue and intensifying competition in core end markets could introduce volatility. These factors may challenge ITT's ability to sustain outperformance.

Find out about the key risks to this ITT narrative.

Build Your Own ITT Narrative

If the conclusions above don't quite fit your perspective, try digging into the numbers yourself and put together your own story in minutes. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding ITT.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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