Johnson Controls rises as UBS turns bullish on new CEO

Johnson Controls International

10/02/2025 13:46

** Shares of Johnson Controls International  JCI.N  up 2.6%
premarket to $89.94 after UBS upgrades to 'buy' from 'neutral',
highlighting its new leadership
    ** Shares of building solutions co could open at fresh
record high, if gains hold
    ** UBS boosts PT by $13 to $103, implying 17.5% upside to
stock's last close
    ** Brokerage said it's positive on CEO appointment of Joakim
Weidemanis, pointing out that as head of Danaher's  DHR.N 
diagnostics business he oversaw 600 basis points of operating
margin improvement during 2020-2024
    ** Overlaying this with JCI's margin opportunity, UBS said
it has "greater confidence" in profit improvement potential,
adding EPS could reach $6 in FY28 (+6% above consensus and +20%
CAGR)
** Last Weds, JCI shares jumped 11% to close at $86.01 after
Ireland-based firm named Weidemanis CEO, as part of succession
plan announced last year following talks with activist investor
Elliott Investment, and lifted its 2025 adj profit forecast
    ** Of 23 analysts covering JCI, recommendation breakdown is
13 "strong buy" or "buy", rest "hold"; median PT of $95.50 up
from $88 a month ago, per LSEG data
    ** Through Fri, shares up 11% YTD vs 4% gain in S&P 500
Industrials  .SPLRCI  and 2.5% advance in S&P 500  .SPX . Stock
was trading around $55.50 a year ago

(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@tr.com 1-646-279-6380))