Tuesday, Johnson Controls (NYSE:JCI) International plc (NYSE:JCI) was downgraded from Buy to Hold by a research firm, following a disruptive cybersecurity attack. The multi-industrial company, known for its intelligent buildings, integrated infrastructure, and energy storage solutions, has been striving for consistent sales growth and margin improvement through mergers and acquisitions.
The company faced significant challenges in the fourth quarter of 2023 due to a cybersecurity incident, which continues to affect its near-term growth. Despite this setback, the firm acknowledges that Johnson Controls' products, including air handling units, limited-touch controls, and thermal detection and scanning, are expected to see increased demand as employees return to office spaces.
The long-term growth prospects for Johnson Controls remain positive, but the recent technical analysis indicates a bearish pattern with lower highs and lower lows that began in July. The current valuation of the company's shares is deemed reasonable by the firm, given the tempered growth expectations.
The research firm suggests that a potential reevaluation of Johnson Controls' stock to a Buy rating could occur if the share price approaches the fundamental support level around $50. This indicates a possible future reconsideration of the company's stock status, contingent on market developments and price movements.
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