JPMorgan Reduces Carrier Global Stock Target Amid Market Adjustments

Analysts at JPMorgan Chase & Co. have lowered their target price for Carrier Global (NYSE: CARR) from $61.00 to $60.00, reflecting a cautious outlook for the stock. The firm, which maintains a “neutral” rating on the shares, indicates a modest potential upside of 0.83% based on the stock’s previous close. This adjustment comes amid a series of similar revisions by other financial institutions regarding the HVAC and refrigeration giant.

Recent Analyst Ratings and Market Reactions

Several other analysts have also recently reassessed their targets for Carrier Global. Barclays decreased its price target from $82.00 to $74.00, keeping an “overweight” rating. Wolfe Research reduced its target from $76.00 to $75.00, maintaining an “outperform” rating. Meanwhile, The Goldman Sachs Group cut its target from $76.00 to $72.00, with a “buy” recommendation. Similarly, Royal Bank of Canada lowered its target from $87.00 to $75.00, retaining an “outperform” rating.

According to MarketBeat, a total of eleven analysts have rated Carrier Global with a “buy” rating, eight have issued a “hold” rating, and one has assigned a “sell” rating. The consensus target price now stands at $74.18, which illustrates a more cautious sentiment in the market.

Stock Performance and Financial Overview

On Friday, shares of Carrier Global opened at $59.51. The company currently boasts a market capitalization of $50.12 billion and a price-to-earnings (PE) ratio of 13.31. The stock has experienced fluctuations, with a 12-month low of $54.22 and a high of $81.09.

Carrier Global recently reported its quarterly earnings on October 28, 2023. The company announced earnings per share (EPS) of $0.67, exceeding analyst expectations of $0.57 by $0.10. Revenue for the quarter reached $5.58 billion, slightly below the consensus estimate of $5.65 billion. The company’s return on equity was reported at 16.65%, with a net margin of 18.05%. Despite these positive earnings, the revenue showed a decline of 6.8% compared to the same quarter last year.

In a significant move, Carrier Global’s Board of Directors approved a share buyback program authorizing the company to repurchase up to $5.00 billion in outstanding shares. This program enables the company to buy back up to 10.1% of its shares through open market purchases, a decision typically viewed as a signal that the board believes the company’s shares are undervalued.

Institutional Investment Trends

The stock has garnered considerable interest from institutional investors. Golden State Wealth Management LLC increased its holdings in Carrier Global by 51.8% during the first quarter, now owning 1,389 shares valued at approximately $88,000. Ransom Advisory Ltd also entered a new position valued at $400,000 in the same quarter.

Furthermore, Shell Asset Management Co. raised its holdings by 98.4% in the second quarter, acquiring 24,160 shares worth around $1.77 million. Other notable investors like Nordea Investment Management AB and Aberdeen Group plc also increased their stakes, contributing to a landscape where approximately 91.00% of the stock is held by hedge funds and institutional investors.

Carrier Global operates in the HVAC and refrigeration sector, providing technologies critical for heating, ventilation, and air conditioning, as well as fire and security systems. The company’s resilience and strategic decisions will be pivotal as it navigates shifting market conditions and investor expectations.