UBS Raises Price Target on Johnson Controls (JCI) to $53; Reiterates Buy

September 21, 2016 9:47 AM EDT
Get Alerts JCI Hot Sheet
Price: $44.06 -0.29%

Rating Summary:
    17 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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UBS reiterated a Buy rating on Johnson Controls (NYSE: JCI), and raised the price target to $53.00 (from $51.00), as the company completes Tyco combination.

Analyst Shannon O'Callaghan commented, "With the Tyco-JCI combination complete, we are assuming coverage of JCI (transfer from Auto Parts coverage). We expect the substantial multi-year cost/productivity opportunities to drive higher earnings power even in a slow growth environment. JCI sees $650M of Tyco synergies ($500M operating cost synergies + $150M tax synergies), $300M of existing JCI productivity targets, and $100M of existing Tyco productivity targets adding ~$1 to EPS over the next 3 years. We view the targeted $900M of cost/productivity ($400M G&A, $275M procurement, $225M field integration) as achievable and potentially conservative."

For an analyst ratings summary and ratings history on Johnson Controls click here. For more ratings news on Johnson Controls click here.

Shares of Johnson Controls closed at $43.94 yesterday.

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