Deutsche Bank Puts "Catalyst Call: Sell" on Illinois Tool Works (ITW) Ahead of Q4

Illinois Tool Works Inc. (NYSE:ITW) is included among the 13 Best Dividend Kings to Buy in 2026.

On January 12, Deutsche Bank put a “Catalyst Call: Sell” on Illinois Tool Works Inc. (NYSE:ITW), pitching it as a short-term trade. The analyst said the stock’s recent underperformance likely isn’t over yet and could drag into the Q4 earnings season. Deutsche Bank also argued that if ITW falls short and issues weaker-than-expected guidance, the shares could take another hit, warning that a “miss and guidance positioned below consensus will result in share price underperformance on earnings day.”

That’s the near-term view. Over the long run, ITW has a very different reputation. It’s one of those industrial names that has repeatedly set ambitious targets, met them, and steadily delivered value back to shareholders over many years.

Looking ahead, ITW’s 2024–2030 plan centers on organic growth, driven by its Customer-Back Innovation process. Instead of brainstorming products internally and hoping the market responds, ITW focuses on customer input and builds solutions around real needs. The company’s goal is to take its existing portfolio of brands and push them further through product development and a broader global sales reach, rather than leaning too heavily on acquisitions.

Illinois Tool Works Inc. (NYSE:ITW) is a global industrial manufacturer with a wide mix of products and equipment sold across a range of markets.

While we acknowledge the potential of ITW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.