Analysts at JPMorgan Chase & Co. have revised their target price for Carrier Global (NYSE:CARR), lowering it from $61.00 to $60.00 according to a research report released on October 28, 2023. This adjustment reflects a “neutral” rating on the stock, indicating limited expectations for significant price movement. The new target suggests a potential upside of approximately 0.83% based on the stock’s previous close.
This downward adjustment follows similar changes from other analysts. On September 11, Barclays reduced its price target for Carrier Global from $82.00 to $74.00, maintaining an “overweight” rating. Other firms, including Wolfe Research and Goldman Sachs Group, also adjusted their expectations. Wolfe Research lowered its target from $76.00 to $75.00, while Goldman Sachs cut its projection from $76.00 to $72.00, holding a “buy” rating.
The Royal Bank of Canada similarly reduced its target price from $87.00 to $75.00 on September 12, affirming an “outperform” rating. In contrast, Weiss Ratings maintained a “buy (B-)” rating for the company on October 8. Overall, eleven analysts have rated Carrier Global with a buy rating, eight have issued a hold rating, and one has assigned a sell rating. According to data from MarketBeat, the consensus target price stands at $74.18, categorized as a “Moderate Buy.”
Financial Performance and Market Insights
Carrier Global shares opened at $59.51 on October 28. The company boasts a market capitalization of $50.12 billion, a price-to-earnings (PE) ratio of 13.31, and a price-to-earnings-growth (PEG) ratio of 2.36. Its current ratio stands at 1.14, quick ratio at 0.80, and debt-to-equity ratio at 0.76. The stock has a 50-day moving average price of $60.56 and a 200-day moving average price of $66.98. Over the past year, Carrier Global has experienced a low of $54.22 and a high of $81.09.
In its latest quarterly earnings report, Carrier Global announced earnings per share (EPS) of $0.67, surpassing analysts’ expectations of $0.57 by $0.10. The company generated revenue of $5.58 billion for the quarter, which fell short of the consensus estimate of $5.65 billion. Year-over-year revenue declined by 6.8%, down from $0.83 EPS in the same quarter last year. The company has issued guidance for fiscal year 2025, projecting an EPS of $2.650. Analysts predict Carrier Global will report an EPS of $2.99 for the current fiscal year.
On the same day, the Board of Directors approved a share buyback program authorizing the repurchase of up to $5.00 billion in outstanding shares, equating to about 10.1% of its shares. Share repurchase programs often indicate that a company’s leadership believes its stock is undervalued.
Investor Activity and Institutional Holdings
Recent trading activity indicates growing interest from institutional investors in Carrier Global. Golden State Wealth Management LLC increased its holdings by 51.8% in the first quarter, now owning 1,389 shares valued at approximately $88,000. Ransom Advisory Ltd. also entered a new position valued at $400,000 during the same period.
In the second quarter, Shell Asset Management Co. significantly boosted its stake by 98.4%, acquiring 24,160 shares valued at $1.768 million. Meanwhile, Nordea Investment Management AB increased its holdings by 1.5%, now owning 73,150 shares valued at approximately $5.369 million. Aberdeen Group plc also raised its position by 1.8%, bringing its total to 717,658 shares valued at around $44.854 million. Collectively, institutional investors hold approximately 91.00% of Carrier Global’s stock.
Carrier Global operates within the heating, ventilation, and air conditioning (HVAC) sector, as well as refrigeration, fire, security, and building automation technologies across the United States, Europe, Asia Pacific, and beyond. It operates through three segments: HVAC, Refrigeration, and Fire & Security. As analysts continue to adjust their expectations, investors remain focused on the company’s performance and strategic direction moving forward.
