Barclays raises Johnson Controls PT on scope for margin expansion

Johnson Controls International

14/05/2025 11:26

** Barclays raises price target on Johnson Controls International JCI.N to $90 from $85, a downside of 6.3% to the stock's last close

     ** Rating unchanged at 'neutral'

     ** Says co's new CEO Joakim Weidemanis sees scope for substantial operating margin expansion in heating, ventilation, and air conditioning (HVAC) business

 ** "It is not clear to us whether the growth and margin profile of F&S  (fan & sprinklers) assets will ever match those of HVAC" - Barclays

     ** Expect co's building solutions orders to be up 7% on-year in June quarter

** Co's adj EPS beat Wall Street estimate for consecutive five quarters

     ** 14 of 23 brokerages rate the stock "buy" or higher, 9 "hold"; their median PT is $97- data compiled by LSEG

     ** As of last close, stock had risen 21.7% YTD

(Reporting by Apratim Sarkar)

((Apratim.Sarkar@thomsonreuters.com))