"A number of investors' concerns largely boil down to end market and execution risks. However, we point to the following bigger positives: a reasonably valued stock; huge upside potential for returns; and HVAC orders and backlog that provide great visibility through 2017," the firm wrote in an analyst note.
Additionally, new products are "energizing" growth and management's focus on lean initiatives and structurally improving its operating processes are transforming profitability, BMO noted.
These factors, combined with pent-up demand and the company's push into parts and services, are driving outperformance that is underpinning double-digit earnings per share growth. This allows for consistency in meeting or beating expectations and creating shareholder value, according to the firm.
The company provides products, services and solutions to improve the quality of air in homes and buildings, transport and to protect food and perishables.
Shares of Ingersoll-Rand closed up 1.61% to $66.94 on Tuesday.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: IR