ITT Acquires Nova Analytics

Analyst Michael A Schneider of Robert W Baird maintains his "neutral" rating on ITT Corporation (NYSE: ITT), while raising his estimates for the company. The target price for ITT is set to $60.

ITT announced that it has entered into an agreement to acquire Nova Analytics. Robert W Baird views this deal positively as it significantly increases the exposure of ITT to the analytical instrumentation market. “We believe this market is capable of growing 4-6% organically and expect Nova to outpace this rate as ITT focuses on expanding its presence in Asia/Pac and the Americas,” the analyst says.

The analyst expects the deal to be minimally dilutive to ITT’s 2010 EPS. Robert W Baird has raised its EPS estimate for FY11 from $4.50 to $4.54.

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