Nomura Securities Upgrades Johnson Controls (JCI) to Buy

Nomura Securities upgraded Johnson Controls (NYSE: JCI) from Neutral to Buy with a price target of $50.00 (from $53.00).

Analyst Jonathan Wright commented, "JCI has underperformed the market by 13% since the start of June. Its NTM multiple is now at a 28% discount to the S&P 500, close to its 10-year low of 34%. Concerns over China are the culprit, but we think that the market overestimates both the size of the exposure and the near-term earnings risk. The “other” 90% of the business is exposed to relatively attractive end markets, which – along with cost out initiatives and mix benefits – give JCI one of the more credible paths to double-digit EPS growth in 2016E, in our view. We upgrade JCI to a Buy with a revised TP of $50."

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 $41.50 yesterday.

You May Also Be Interested In

• Jefferies Upgrades Friedrich Vorwerk Group SE (VH2:GR) to Hold
• JPMorgan Starts Hyundai Department Store (069960:KS) at Overweight
• Morgan Stanley Starts Sampo Oyj (SAMPO:FH) (SAXPY) at Equalweight