Johnson Controls (JCI) Stock Gains, Upgraded at Credit Suisse
NEW YORK (TheStreet) -- Johnson Controls (JCI) - Get Report stock is up by 1.75% to $43.50 in pre-market trading on Tuesday, after receiving a rating upgrade to "outperform" from "neutral" at Credit Suisse earlier today.
The firm raised its price target to $50 from $45 on shares.
At the stock's current price, "almost no value" is being given to its Tyco (TYC) merger or Adient spin-off, the firm wrote in a note.
After ascribing a "reasonable value" for these two deals, a fair value would be roughly 18% higher than the current share price, bolstered by the belief that Johnson Controls should generate "superior earnings and cash flow growth" compared to the sector average, Credit Suisse noted.
The firm added that any concerns regarding the Tyco merger are either embedded in the stock price or "we feel reassured as regards the downside risk that they pose."
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Johnson Control's strengths such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations are countered by weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: JCI
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 article's author.
