NEW YORK (TheStreet) -- Shares of Johnson Controls (JCI - Get Report) were advancing on heavy trading volume early-afternoon Monday as the Cork, Ireland-based company said it completed the separation of Adient (ADNT), its automotive seating business.
Earlier this year, Johnson Controls announced that it would spin Adient off into a new publicly traded company as a result of its merger with Princeton, NJ-based security systems provider Tyco Int'l.
Additionally, Goldman Sachs today started coverage of Johnson Controls stock with a "buy" rating and a $46 price target.
Johnson Controls has strong fundamentals and could see top-quartile organic growth driven by improving business and Tyco-related synergies, the firm said, according to TheFly.
Baird also initiated coverage of the stock with an "outperform" rating and a $53 price target.
The firm sees a visible pathway to mid-teens earnings growth with several positive catalysts, such as its investors day, synergy upside, free cash flow deployment and valuation re-rating, TheFly reports.
Oppenheimer analysts said they continue to see Johnson Controls evolving into a multi-industrial growth company that's highly leveraged in sustainable growth.
The firm cut its price target to $48 from $52, but reiterated its "outperform" rating on shares of the automotive parts producer.
UBS also reduced its price target to $45 from $53 as a result of the spinoff of Adient. The firm has a "buy" rating on Johnson Controls stock.
Johnson Controls should now be able to focus on accelerating the Tyco merger integration, generating synergies and beginning productivity initiatives, the firm added, TheFly noted.
More than 3.62 million of the company's shares changed hands so far today vs. its average 30-day volume of 564,744 shares per day.
Separately, 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.
The team rates Johnson Controls as a Hold with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, the team also finds weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: JCI