Trane Technologies (TT) PT Raised to $366 at Citi
Citi analyst Andrew Kaplowitz raised the price target on Trane Technologies (NYSE: TT) to $366.00 (from $355.00) while maintaining a Buy rating.
The analyst comments "Strong 1Q24 beat and raised '24 guidance, we think indicate that TT continues to capitalize on relatively healthy end-market trends (particularly in CHVAC) and is delivering solid operational performance across margin (+230bps y/y expansion in 1Q) and FCF generation, which, in our view, should support solid multi-year earnings growth and drive consistent shareholder value. We think TT’s strategy on continued investment (towards innovation, sales force, automation initiatives) and optimizing costs/productivity benefits should position the company to generate enduring 25%+ operating leverage (organic) as well as offer innovative product/solutions in a relatively competitive market (and support market outgrowth). Overall, strong backlog ($7.7bn; up 10% q/q) and continuation of healthy end-market trends (CHVAC - datacenter demand seemingly leading growth) should support healthy topline growth; combined with disciplined execution and capital deployment optionality should, in our view, provide good visibility toward raised ’24 guidance/growth potential in ‘25/beyond."