* Cuts price target on ITT to $15.50 from $24.00
* Cuts ITT's 2012 EPS estimate to $1.55 from $1.70
* Shares down 3 percent
June 22 (Reuters) - FBR Capital Markets downgraded the shares of diversified manufacturer ITT Corp to "underperform" from "market perform", citing weakness in its main businesses in Europe and China.
FBR reduced its estimate for ITT's 2012 earnings to $1.55 per share from $1.70 per share. In May, ITT had forecast adjusted earnings of $1.62 per share to $1.72 per share for the year.
Nearly a third of ITT's sales can be impacted by weakness in Europe. These include its auto components business, which has seen weaker-than-expected demand, analyst Ajay Kejriwal said.
FBR Capital also cut its price target on the stock to $15.50 from $24.00.
Kejriwal also sees "potential weakness ahead in the company's mining markets", which contribute about 10 percent of revenue.
Shares of ITT were down 3 percent in early trade on the New York Stock Exchange on Friday.