Barclays analyst Julian Mitchell says the $600M settlement gross figure excluding insurance and Kidde-Fenwal proceeds announced by Carrier Global (CARR) is in-line with its estimate, but insurance proceeds in aggregate are likely to be substantial, making it figure “look overly punitive.” The settlement news serves as another reminder that Carrier should be treated by investors as fully comparable with Lennox (LII) and Trane (TT), now that its portfolio is 100% heating, ventilation, air conditioning and refrigeration. Barclays thinks the Carrier news is encouraging for 3M (MMM) and Johnson Controls (JCI) in that it underscores that there are likely to be potentially significant insurance proceeds for companies having to make cash payments for PFAS liabilities.
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