Johnson Controls International (NYSE:JCI) is facing a cybersecurity incident. In an SEC filing, the company said it has encountered disruptions within its internal IT (Information Technology) infrastructure and applications due to the cyber attack.
Johnson Controls International produces various building products and systems, encompassing residential and commercial HVAC (Heating, Ventilation, and Air Conditioning) equipment, industrial refrigeration systems, security systems, and fire detection and suppression solutions.
The company initiated an investigation and is evaluating the extent of the information that may have been compromised due to the incident. Further, it has deployed corrective actions to minimize its impact. JCI stated that many applications still function effectively with minimal disruption.
However, it warned that the cyber attack disrupted certain operations, leading it to consider whether it could publish its fourth-quarter and full Fiscal Year results on time. Moreover, Johnson Controls is also evaluating the implications of this incident on its financial performance.
While the company faces disruptions from the cybersecurity incident and takes remedial actions, let’s look at what the Street recommends for its shares.
Is Johnson Controls a Buy or Sell?
Wall Street analysts are cautiously optimistic about Johnson Controls stock. On September 27, HSBC analyst Puneet Garg upgraded Johnson Controls stock to Buy from Hold and increased the price target to $69 from $58. The analyst sees the company’s current valuation as compelling and is upbeat about its building solutions business. However, Barclays analyst Julian Mitchell lowered JCI’s price target to $64 from $66, citing challenges in China and Europe, and concerns over receivables.
JCI stock sports a Moderate Buy consensus rating, reflecting seven Buy and four Hold recommendations. Meanwhile, analysts’ average price target of $71.40 implies 30.91% upside potential from current levels.
