Johnson Controls upgraded to Sector Perform on transition at RBC Capital

RBC Capital last night upgraded Johnson Controls to Sector Perform from Underperform with a price target of $69, up from $61. The firm says the company’s recently announced portfolio pivot and leadership transition along with constructive dialogue with Elliott Management “have sufficiently de-risked the story” and balanced the stock’s risk/reward. Johnson remains a “show-me” story but datacenter represents an attractive growth vertical, the analyst tells investors in a research note.