Johnson Controls stock price target raised to $130 by Wolfe Research

Investing.com - Wolfe Research raised its price target on Johnson Controls (NYSE:JCI) to $130.00 from $128.00 on Wednesday, while maintaining an Outperform rating on the stock. The building products giant, currently valued at nearly $70 billion, trades near its 52-week high of $107.20, having delivered an impressive 33% return over the past six months.

The research firm cited potential for a trajectory exceeding $6 earnings per share ($6.75 excluding amortization) that would support the new year-end 2026 target price.

Wolfe Research does not expect Johnson Controls management to necessarily endorse this medium-term EPS projection during the current quarter, with more substantive details likely coming in November.

The firm anticipates Johnson Controls will report third-quarter 2025 earnings showing mid-single-digit growth in orders.

Wolfe Research also expects Johnson Controls to increase its fiscal year 2025 EPS guidance from approximately $3.60 to around $3.70, primarily driven by favorable foreign exchange conditions.

In other recent news, Johnson Controls has seen several developments that may interest investors. Moody’s upgraded the company’s senior unsecured ratings to Baa1 from Baa2, reflecting expectations of improved EBITDA margins and stronger cash generation. This upgrade is supported by Johnson Controls’ diverse customer base and significant scale in the commercial HVAC and building controls markets. Additionally, UBS reiterated its buy rating, projecting a 70% earnings upside driven by structural margin improvements and robust capital returns. The firm also noted a recent $9 billion increase in share repurchase authorization, with a significant portion expected to be executed in the coming months.

Meanwhile, Oppenheimer downgraded Johnson Controls from Outperform to Perform, citing the stock’s valuation reaching historical highs. The firm is taking a cautious stance, awaiting further details from the company’s strategic review. In leadership news, Johnson Controls appointed Chris Scalia as the new executive vice president and chief human resources officer. Scalia joins from The Hershey Company (NYSE:HSY), bringing extensive experience in growth and transformation efforts. These updates reflect a dynamic period for Johnson Controls, marked by strategic shifts and financial evaluations.

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