Wolfe Research on Thursday kept its Peerperform designation for ITT Corp. (NYSE:ITT) but increased the firms year-end 2026 fair value range to $166 to $282, up from a prior range of $148 to $272. The research house emphasized that ITTs current market price sits near its 52-week high and that valuations appear extended on several commonly used metrics.
At the time of Wolfes note, ITT shares were trading at $206.87, close to a 52-week peak of $207.86. The firm pointed to InvestingPro data which indicates the stock is trading above its Fair Value estimate, a signal that the market price may be elevated relative to intrinsic measures.
Wolfe Research highlighted two valuation perspectives. On a price-to-earnings basis, ITT trades at roughly 28 times standalone next-twelve-months earnings - a level that represents a 21% premium to Wolfes multi-industry coverage. By contrast, on an EV/EBITDA basis the company is trading at about 16 times next-twelve-months EBITDA, a roughly 7% discount versus the same coverage group.
These firm-provided valuation observations are consistent with InvestingPro figures cited in the research: a current P/E of 33.86 and an EV/EBITDA multiple of 20.32, both described as elevated relative to typical benchmarks.
Wolfes internal valuation model uses multiple scenarios to frame its view of ITT. In the firms base case it applies 22.5 times pro forma 2027 estimated cash earnings per share. A bull-case multiple of 26.5 times and a bear-case multiple of 18 times round out the scenario set Wolfe is using to calculate the updated fair value range.
Despite the valuation discussion, Wolfe positioned ITTs risk/reward profile in the middle of its multi-industry coverage. The note singled out the companys operational performance, stating that "execution continues to be very good operationally." Wolfe nevertheless retained a Peerperform rating rather than an outright Buy.
ITT Corp., an industrial manufacturer of specialty components serving the transportation, industrial and energy markets, also posted strong reported results for the fourth quarter of 2025. The company delivered adjusted earnings per share of $1.85, ahead of the $1.78 consensus estimate, and reported revenue of $1.05 billion versus a forecast of $1.01 billion.
Following those results, DA Davidson reiterated a Buy rating on ITT and set a $215.00 price target. DA Davidson noted that ITTs core sales growth exceeded its model by more than 350 basis points, with the Connected Controls Technologies and Industrial Process segments identified as significant contributors to that outperformance.
Taken together, Wolfes updated fair value range, the firms commentary on valuation and operational execution, plus ITTs reported fourth-quarter results and DA Davidsons reaction provide investors with a mix of signals: solid operational momentum alongside elevated market multiples.
What this means
- Analysts see ITT executing well operationally while market valuations are high versus several benchmarks.
- Investor reception to recent earnings has been positive enough to prompt a reaffirmed Buy from DA Davidson, even as Wolfe remains measured.
- Key sectors affected include industrial manufacturing, transportation components, and energy markets, along with investor sentiment in industrial equities.