Melius Upgrades Trane Technologies (TT) to Buy

Melius analyst Scott Davis upgraded Trane Technologies (NYSE: TT) from Hold to Buy with a price target of $490.00.

The analyst comments "We are upgrading Trane (TT) and Johnson Controls (JCI) to Buy from Hold. The catalyst in part being yesterday’s correction, with TT down 3% and JCI down 6% following comments from NVIDIA at CES around future cooling architectures that will reduce, or potentially eliminate, the need for chillers. While we do not expect this “smart” evolution to be as negative for cooling suppliers as the stock reactions would suggest, the drivers of the current applied HVAC “supercycle” are far broader than just data center. Supply chain localization/reshoring, replacement of aging units, higher electricity prices while more efficient systems shorten payback periods, and local decarbonization mandates (e.g. NYC’s Local Law 97) are all helping drive outsized growth across a wide array of verticals. Other key end-markets including resi HVAC and refrigerated transport are in deep recession, but should stop hurting by mid-year, with recovery likely later in ’26 on easy comps."

For an analyst ratings summary and ratings history on Trane Technologies click here. For more ratings news on Trane Technologies click here.

Shares of Trane Technologies closed at $381.10 yesterday.

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