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Investing.com - Jefferies has reduced its price target on Carrier Global (NYSE:CARR) to $90.00 from $100.00 while maintaining a Buy rating on the stock. Currently trading at $62.37, the company commands a market capitalization of $53.2 billion and trades at a P/E ratio of 36x.
The price target adjustment follows Carrier’s downward revision of its 2025 U.S. residential HVAC outlook, with the company now projecting third-quarter volumes to decline more than 40%, compared to its previous forecast of a 15% decrease.
Despite volume challenges, Carrier expects price/mix to remain up by double digits, though earnings per share are anticipated to be approximately $0.20-$0.25 lower in the third quarter than previously projected.
Management anticipates aggressive channel restocking through the fourth quarter, with field inventory expected to reach multi-year lows by year-end, according to Jefferies’ research note.
The investment firm noted that Carrier’s commercial HVAC and aftermarket growth remain strong, which supports long-term upside potential into 2026 and beyond, with the new price target representing approximately 17 times the company’s estimated 2026 EBITDA.
In other recent news, Carrier Global has adjusted its earnings guidance for the third quarter due to lower-than-expected U.S. residential HVAC sales, which are now anticipated to create an adjusted EPS headwind of $0.20-0.25. This revision follows CEO David L. Gitlin’s announcement at a Morgan Stanley conference, where he highlighted a nearly 30% reduction in industry volumes in July, impacting Carrier’s projections. Additionally, Barclays has lowered its price target for Carrier Global to $74, maintaining an Overweight rating, while RBC Capital has also adjusted its price target to $87, keeping an Outperform rating. These changes come in light of Carrier’s latest earnings report, which revealed a modest beat compared to RBC’s estimates.
Carrier Global has also announced a significant change in its segment reporting structure, aligning with its portfolio transformation strategy. The company has recast certain financial amounts from its 2024 Annual Report to better reflect its business operations, now segmented into Climate Solutions Americas, Europe, Asia Pacific Middle East & Africa, and Transportation. In leadership news, Carrier Global appointed 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., Revlon Inc., and Colgate-Palmolive Company. These developments reflect Carrier Global’s ongoing strategic adjustments and leadership changes.
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