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Deutsche Bank Downgrades Johnson Controls (JCI) to Hold

July 2, 2009 10:01 AM EDT
JCI Hot Sheet
Rating Summary:
    11 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 9 | New: 35
Deutsche Bank downgrades Johnson Controls (NYSE: JCI) from Buy to Hold. Price target $23.

Deutsche analyst says, "Shares have risen 161% since our upgrade on March 12th, compared to 23% for the S&P500. Our upgrade was based on our belief in JCI's ability to mitigate downside in its Auto segment, and our belief that JCI's Power Solutions & Building Efficiency businesses were less cyclical than implied by JCI's valuation. While we continue to believe that JCI will restructure its Auto segment to profitability by year-end, and navigate a temporary slowdown in its B.E. segment in 2010, we believe valuation reflects the current outlook...We believe that JCI's Building Efficiency segment results could weaken short-term, as the education, health and gov't sectors could lag a recovery in the overall construction market. Longer-term, JCI remains bullish on opportunities for the Building Efficiency business from the Federal Stimulus package, which included $12bn of revenue opportunities for products and services such as those offered by JCI."

To see more analyst ratings on JCI Click Here.

Johnson Controls, Inc. (Johnson Controls) provides automotive interiors, products and services that optimize energy usage in buildings and batteries for automobiles and hybrid electric vehicles, along with related systems engineering, marketing and service expertise.

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