NEW YORK (TheStreet) -- Johnson Controls (JCI) had its analyst meeting yesterday and TheStreet's Jim Cramer and Stephanie Link, co-managers of the Action Alerts PLUS portfolio, were happy with what they heard.
Cramer said JCI is very undervalued and is one of the portfolio's largest industrial positions.
Link added that the stock is a "big-time" buying opportunity at current levels. The new CEO, Alex Molinaroli, is setting expectations low enough so JCI can "beat and raise" estimates next year, she said.
The stock could hit $65 or $70 "in a heartbeat" if management were to break up the company, according to Cramer. He added that shares could go even higher if JCI shed some of its underperforming business segments.Link said management is focused on diversifying the business and shifting away from automotive and into HVAC and energy efficiency. The move should allow the company to achieve higher margins. Link added that JCI's cash flow will be better than expected, providing the company with more flexibility to buy back shares and examine possible acquisition targets.