Split of Johnson Controls (JCI) Would be Foolish, Unlikely to Happen

March 15, 2013 9:13 AM EDT
Get Alerts JCI Hot Sheet
Price: $42.87 -0.51%

Rating Summary:
    17 Buy, 12 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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According to recent reports, Johnson Controls (NYSE: JCI) is exploring the sale of its automotive electronics business. Analysts at Morgan Stanley don't think a split of the company is a good idea, and think it will be destructive to shareholder value.

JCI will not and should not break up the co. as sum of the parts is worth less than the whole, said an analyst at the bank. If split, each stub could trade at a lower multiple than current and peer levels.

Morgan Stanley has an Overweight rating on Johnson Controls with a price target of $35.00.

For an analyst ratings summary and ratings history on Johnson Controls (NYSE: JCI) click here. For more ratings news on Johnson Controls click here.

Shares of Johnson Controls closed at $34.93 yesterday.

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