ITT: Initial '26 Guidance Leans Conservative

研报英文原文证据摘录

ITT: Initial '26 Guidance Leans Conservative

May 11, 2026

Investment Conclusion

ITT Inc. (ITT): Peer Perform Rating - YE26 Fair Value Range of $162-323

350 Investment Thesis

Strong Operator and Consistent Execution: ITT has generally

outperformed its underlying end markets due to the company's

250 technological differentiation and strong operational execution. We believe

this supports an outlook for solid MSD organic growth.

200 M&A Flywheel Starting to Spin: The SPX FLOW acquisition closed in

1Q26; this represents a meaningful step up in the cadence of capital

150 deployment. Net leverage is 3.4x post-close and should be <2.0x within

18 months post close. 100

Peer Perform Rating: We are Peer Perform rated as the stock has seen

50 absolute and relative multiple expansion that we believe reflects an

appreciation for the company's operational excellence. With that said, we

view current relative valuation as balanced; consensus models reflect Dec-19 Apr-20 Aug-20 Dec-20 Apr-21 Aug-21 Dec-21 Apr-22 Aug-22 Dec-22 Apr-23 Aug-23 Dec-23 Apr-24 Aug-24 Dec-24 Apr-25 Aug-25 Dec-25 Apr-26

continued progress in line with the long-term targets.

ITT EE/MI S&P 500

Source: Wolfe Research, FactSet Potential Catalysts

Fair Value Methodology Continued Friction Outgrowth vs. Market: ITT's friction OE business

has outperformed auto builds by ~800bps over the last ~9 years. If

Bull Case outgrowth continues at that level, there could be upside to MT organic.

Organic Growth (CAGR: '23-'28) 7% End Market Recovery: ITT's IP and CCT segments have grown below

OM Expansion ('23-'28) 780bps trend over the last decade, largely a function of slow growth in some of its

EPS 2027e $11.15 process (chemical and energy), general industrial, and aero/defense end

P/E Multiple 29x markets.