BUZZ-Johnson Controls rises as UBS turns bullish on new CEO

Reuters
02/10
BUZZ-Johnson Controls rises as UBS turns bullish on new CEO

** 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))

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