Johnson Controls (JCI – Research Report), the Industrials sector company, was revisited by a Wall Street analyst on January 30. Analyst Brett Linzey from Mizuho Securities remains neutral on the stock and has a $62.00 price target.
Brett Linzey’s Buy rating for Johnson Controls is based on a multifaceted analysis of the company’s performance and projections. In the first quarter, Johnson Controls delivered earnings per share that met expectations and provided a robust backlog that suggests a healthy demand pipeline. Despite a slight organic sales decline mainly due to market challenges in the Asia Pacific region, the company’s North American and EMEA segments demonstrated resilience, with particular strength in service orders. This demonstrates a diversified geographic footprint that helps to mitigate regional weaknesses.
Furthermore, Linzey’s recommendation takes into account the company’s strategic initiatives to explore options for non-core businesses, which could enhance focus and shareholder value. While the full-year 2024 guidance was modestly lowered, management’s expectations for margin expansion and the stabilization of global products in the latter half of the year contribute to a positive outlook. The combination of a solid backlog, strategic realignment, and anticipated improvement in margins underpin the Buy rating despite near-term headwinds in certain markets.
Linzey covers the Industrials sector, focusing on stocks such as Parker Hannifin, Pentair, and Rockwell Automation. According to TipRanks, Linzey has an average return of 9.2% and a 71.08% success rate on recommended stocks.
In another report released yesterday, Oppenheimer also maintained a Buy rating on the stock with a $66.00 price target.
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Johnson Controls (JCI) Company Description:
Johnson Controls International plc is a diversified technology and multi-industrial company. The company’s operations include creation of intelligent buildings, air systems, HVAC controls, security and fire safety solutions, providing efficient energy solutions, integrated infrastructure, and next-generation transportation systems that work seamlessly together to deliver on the promise of smart cities and communities.
Read More on JCI:
- Johnson Controls downgraded at Deutsche Bank with investment thesis weakened
- Johnson Controls downgraded to Hold from Buy at Deutsche Bank
- Johnson Controls downgraded to Hold from Buy at Melius Research
- Johnson Controls (NYSE:JCI) Tanks on Soft Q1 Print
- Johnson Controls cuts FY24 adjusted EPS view to $3.65-$3.80 from $3.65-$3.80
