UBS Raises Price Target on Johnson Controls (JCI) to $53; Reiterates Buy
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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."
Shares of Johnson Controls closed at $43.94 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
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