Whirlpool takeover hopes cool after Bosch-Johnson Controls deal, says RBC

RBC Capital analyst Mike Dahl reiterated an Underperform rating and $79 price target on Whirlpool (WHR) after Bosch reached a definitive agreement to buy Johnson Controls’ (JCI) residential and light commercial HVAC assets for about $6.7B. The firm views comments from Bosch’s board and management after the announcement as downplaying the potential for an additional large deal in the near-term. While Whirlpool shares have fallen over the past week, the stock is still up22% since June 25 compared to the building products group, the analyst tells investors in a research note. The firm added that it expects investors to be more willing to re-engage on the negative side if earnings fall short following the Bosch news.