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Illinois Tool Works initiatives appear to be gaining traction, says Wells Fargo

Wells Fargo believes that Illinois Tool Works' 19% Q3 operating profit margin suggests that its initiatives to improve its operating margins are gaining traction. The firm expects the stock to recover from its weakness in the wake of the company's weaker than expected guidance, which Wells believes was caused by a technical reclassification issue. It keeps an Outperform rating on the stock.