We are initiating coverage on ITT Corporation (ITT) with
an Outperform rating and $57 target price. The
company exceeded its second quarter earnings
guidance due to strong results overall.

Total defense
organic orders improved 29% year over year on
strong product activities. OEM pressures in the
aerospace market including the Boeing-787 delay
have resulted in downward forecast for motion and
flow control business.

Finally, ITT was able to place
$1 billion in senior debt at a very attractive blended
rate of 5.5% per annum which reflects on the
confidence reposed on the company by participants
in the financial markets.Zacks Investment Research