In pre-market action the stock is up $0.87 at $35.37.
From Notable Calls:
Baird is upgrading Johnson Control (NYSE:JCI) to Outperform from Neutral while raising their price target to $42 (prev. $33). Firm says JCI could be a $60 stock in 3-4 yrs time.
Firm notes that while they have been chasing the stock higher in recent months, it has outperformed the market by only 3% since its last earnings report and has been lagging the industrials sector of the S&P 500. This is one of the best business models in the automotive space with a well-diversified revenue steam across end markets and geographic regions. With automotive now less than one-half of revenue and one-fourth of profits, investors have increasingly viewed and valued the stock as an industrial.
The catalysts behind their upgrade are:
Rapid Profit Recovery: The company’s second fiscal quarter (March) was a record for any second quarter. Contributing to this was strong recovery in revenue, up 32%, driven by Interior Experience and Power Solutions along with parts of Building Efficiency (residential and Global Workplace Solutions). Additionally, margin recovery was significant driven by cost-cutting, volume and equity income from China in Interior Experience along with volume and productivity in Power Solutions and Building Efficiency.
Strong Growth in China: Strong economic activity in China is driving strong results across all business units; most of these investments are in minority-owned joint ventures with the profit growth most visible in the equity income line. Interior Experience is benefiting from the strong automotive demand and dominant market share. Power Solutions has a leading share of the OEM battery market and emerging end market demand bringing more advanced battery technology to this market. The Building Efficiency business is also well positioned....MORE...Notablecalls: Nice call, my only question is - will Baird have the power to move the stock? JCI traded 11 million shares on Friday.
Otherwise the chart looks good, close to breaking to new highs.
$35.50 is the line in the sand. It will get there but will it be surpassed?