Trane price target raised to $400 from $330 at Jefferies

Jefferies raised the firm’s price target on Trane (TT) to $400 from $330 and keeps a Hold 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, Lennox (LII) and Carrier Global (CARR), while commercial strength should drive Johnson Controls’ (JCI) results, the analyst tells investors in a Q3 group preview.