Johnson Controls price target raised to $90 from $85 at Jefferies

Jefferies analyst Stephen Volkmann raised the firm’s price target on Johnson Controls (JCI) to $90 from $85 and keeps a Buy rating on the shares. HVAC, or heating, ventilation, and air conditioning, equipment makers are up 12%-40% year-to-date relative to the S&P 500, notes the analyst, who attributes an established and growing backlog in commercial, a turn in residential trends, positive pricing and longer-term secular drivers as having benefited the industry. A potentially larger-than-expected pre-build in North American residential ahead of the A2L transition should support “beat and raise quarters” at Trane (TT), Lennox (LII) and Carrier Global (CARR), while commercial strength should drive Johnson’s results, the analyst tells investors in a Q3 group preview.