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Investing.com - RBC Capital has lowered its price target on Carrier Global (NYSE:CARR) to $75.00 from $87.00 while maintaining an Outperform rating on the stock. The company, currently trading at $62.30 and commanding a market cap of $53 billion, has shown resilience as a prominent player in the Building Products industry, according to InvestingPro data.
The adjustment follows Carrier’s negative pre-announcement on September 10 and a subsequent analyst call on September 11, which revealed significant weakness in the company’s Americas residential HVAC segment, which represents approximately 50% of its revenues. Despite these challenges, the company maintains a "Fair" overall financial health score and has demonstrated consistent growth with revenue reaching $22.5 billion in the last twelve months.
RBC Capital noted that Carrier’s third-quarter 2025 guidance has been substantially reduced, initially set 13% below consensus in late July and now reset 30% below consensus expectations.
The firm attributed the residential HVAC weakness to two equal factors: residential/consumer-related issues and dealer destocking, while emphasizing there were no market share losses or execution problems identified.
RBC Capital has reduced its 2025 and 2026 estimates for Carrier by 12% and 10% respectively, including an additional 5-cent impact from softer performance in Europe RLC and Section 232 reset, while noting that Carrier plans cost-reduction measures with benefits expected to begin in the first half of 2026.
In other recent news, Carrier Global has adjusted its third-quarter outlook, now expecting a significant decline in residential volumes of over 40% year-over-year, a stark contrast to its earlier forecast of a 15% decrease. This revision has prompted several analyst firms to adjust their evaluations. Goldman Sachs has maintained a Buy rating on Carrier Global with a price target of $76.00, while Jefferies has lowered its price target from $100.00 to $90.00, also retaining a Buy rating. Barclays has similarly reduced its price target to $74.00 from $82.00, keeping an Overweight rating on the stock. Carrier Global’s CEO, David L. Gitlin, highlighted the lower-than-expected third-quarter volume at a Morgan Stanley conference, citing industry data showing a nearly 30% reduction in July volumes. In a separate development, Carrier Global announced the appointment of Beril Yildiz as Vice President, Controller, and Chief Accounting Officer, effective September 22, 2025. Yildiz brings extensive experience from her previous roles at International Flavors & Fragrances Inc. and Revlon Inc. These developments reflect the ongoing challenges and strategic adjustments within Carrier Global.
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