Johnson Controls assumed with a Neutral at UBS

UBS assumed coverage of Johnson Controls (JCI) with a Neutral rating and price target of $90, up from $72. The firm expanded its coverage of electrical equipment and multi-industry companies to include 16 large cap stocks. UBS believes we are overdue for recovery as the ISM Manufacturing PMI has been in contraction territory for 24 consecutive months, “by far the longest stretch of contraction in the last three decades.” There is also a clear inverse relationship between industrial output and interest rates, implying potential for a positive catalyst as interest rates further normalize, the analyst tells investors in a research note. The firm adds the outcome of the recent U.S. election gives way to potential for more robust short cycle recovery.