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Investing.com - UBS raised its price target on Trane Technologies (NYSE:TT) to $544.00 from $500.00 on Tuesday, while maintaining a Buy rating on the HVAC company’s stock.
The new price target represents a potential 25% upside from current levels and stands as a Street-high estimate, according to UBS.
UBS sees potential for Trane’s operating profits to exceed consensus estimates by 4%, 9%, and 16% over the next three years (2026-2028), reflecting expectations for reaccelerating growth.
The firm noted that Trane is achieving 8% organic growth this year despite approximately 50% of its business segments—residential HVAC, transportation, and light commercial—currently being flat to down.
UBS’s updated model assumes modest recovery in these challenged end markets, combined with sustained double-digit growth in Applied HVAC and Services, which it believes will drive meaningful positive earnings revisions in 2026 and beyond.
In other recent news, Trane Technologies reported its second-quarter earnings, exceeding analyst expectations for adjusted earnings. However, the company’s revenue fell short of estimates, despite achieving record enterprise bookings of $5.6 billion, marking a 5% increase from the previous year. JPMorgan responded to Trane’s earnings report by raising its price target to $407, citing a solid overall performance in revenue and margins, while maintaining a Neutral rating. Conversely, HSBC downgraded Trane Technologies from Buy to Hold, even as it raised its price target to $460. This downgrade was attributed to valuation concerns, despite acknowledging the company’s impressive growth in both top and bottom lines, particularly in the Americas commercial HVAC sector. These developments reflect a mixed outlook from analysts regarding Trane Technologies’ financial performance and future prospects.
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