UBS upgrades this HVAC equipment maker after the appointment of a new CEO

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UBS upgrades this HVAC equipment maker after the appointment of a new CEO

UBS turned bullish on Johnson Controls shares after the company appointed a new chief executive. Analyst Amit Mehrotra upgraded the maker of HVAC and fire suppression equipment to buy from neutral and upped his price target by $13 to $103. The new forecast signals the stock could climb 17.5% from Friday’s close. Mehrotra’s call comes after Johnson Controls announced last week that Joakim Weidemanis would take the CEO role beginning in March. Mehrotra cited Weidemanis’ success expanding operating margins at Danaher’s diagnostics business and the potential to replicate that success for Johnson Controls. “The bottom line is we see meaningful incremental margin potential, and we view the company’s ability to execute as better following strategic actions and new management appointments,” Mehrotra said. The analyst said that Weidemanis’ installations provides “greater confidence” in the potential for profit improvement. But Mehrotra also noted the challenge in this work, given that it will require a “structural change” within the company. Mehrotra said earnings per share could hit $6 in the 2028 fiscal year, which would be around 6% above consensus estimates. What’s more, it would mark a compound annual growth rate of about 20% compared with the 2025 fiscal year. Johnson Controls shares were unchanged before the bell on Monday following a losing Friday. U.S.-listed shares of the Irish company have jumped just over 11% in 2025, adding to last year’s gain of around 37%. Analysts are split on the stock. LSEG data shows that of the 23 who cover it, 12 rate it a buy or strong buy. The remaining 11 have a hold rating on Johnson Controls.

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