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Investing.com - Johnson Controls (NYSE:JCI) stock gained after UBS maintained its Buy rating and $124.00 price target following the company’s encouraging quarterly results. The stock is currently trading at $120.05, representing an impressive 54.94% return year-to-date.
Johnson Controls reported 6% organic order growth, up from 2% in the previous quarter, while its backlog increased 13% year over year on an organic basis, according to UBS. With a market capitalization of $78.55 billion, the company is a significant player in the Building Products industry.
The company initiated fiscal year 2026 guidance at $4.55 per share, above the consensus estimate of $4.43 and UBS’s projection of $4.47, with UBS noting management tends to be conservative with initial guidance. InvestingPro data shows Johnson Controls trading at a low P/E ratio relative to near-term earnings growth with a PEG ratio of 0.95, suggesting potential value despite its current P/E of 39.94.
Johnson Controls guided for 50% operating leverage in FY26 (55% for fiscal Q1), double its prior algorithm, which UBS highlighted as evidence of cost-saving opportunities the firm has previously identified.
The company also raised its long-term operating leverage profile to more than 30%, up from its previous target of more than 25%, though UBS believes there could be additional opportunity beyond this improved outlook. InvestingPro data reveals Johnson Controls has maintained dividend payments for 55 consecutive years, currently offering a 1.32% yield. For deeper insights into JCI and 1,400+ other top stocks, consider exploring the comprehensive Pro Research Reports available on InvestingPro.
In other recent news, Johnson Controls International plc reported fourth-quarter results that surpassed analyst expectations. The company’s adjusted earnings and revenue both exceeded the estimates set by analysts. These strong financial results have positioned Johnson Controls favorably in the eyes of investors. The company also provided robust guidance, further boosting investor confidence. While the company’s shares reacted positively to the news, the focus remains on the strong earnings and revenue performance. The developments reflect positively on Johnson Controls’ strategic execution and market position. Investors and analysts will be closely monitoring future announcements to gauge ongoing performance.
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