Deutsche Bank Downgrades Johnson Controls (JCI) to Hold, Citing Macro Headwinds

July 20, 2012 7:20 AM EDT
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Price: $45.45 --0%

Rating Summary:
    17 Buy, 12 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Deutsche Bank downgraded Johnson Controls (NYSE: JCI) from Buy to Hold.

Deutsche analyst said, "While a lower than expected tax rate was a $0.02 benefit, the company also disclosed that they absorbed an unusual $40 MM ($0.05 EPS) impact from a temporary shortage of lead cores for their Power Solutions division. If we add this back, earnings would have been in-line with consensus. Nonetheless, several underlying trends have led us to re-assess our view on JCI's outlook. Despite what we believe to be a very compelling valuation, we are lowering our recommendation based on lowered confidence in JCI's earnings outlook...We lower our F4Q12 (Sept) by $0.14, to $0.78 from $0.92...We are also adjusting our F2013 est. to $2.90 from $3.15."

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 $26.07 yesterday.

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