Carrier Global: Morgan Stanley maintains Equal-Weight, PT down to $75 from $78.

Carrier Global: Morgan Stanley maintains Equal-Weight, PT down to $75 from $78.

July 2, 2025

Morgan Stanley has downgraded Carrier Global (CARR) to an Equal-Weight rating, reducing its price target to $75 from $78. The downgrade comes after the company reported earnings that exceeded analyst expectations, but also faced challenges in maintaining revenue growth and addressing technical issues.

Carrier Global's stock has been a subject of interest among analysts, with a consensus rating of "Moderate Buy" from both MarketBeat [1] and TipRanks [2]. The average price target for the stock is $84.64, representing a 27.51% upside from its current price of $66.38.

However, the downgrade by Morgan Stanley highlights concerns about the company's valuation and growth prospects. The price-to-earnings (PE) ratio of 12.46 suggests that the stock may be overvalued compared to industry peers, while the year-over-year revenue decline of 3.7% raises questions about the company's ability to maintain sales momentum.

Despite the downgrade, Morgan Stanley acknowledges the company's strong financial performance and positive earnings call outcomes. The analysts also note that corporate events further support Carrier Global's growth potential. However, they stress that addressing cash flow and revenue growth issues is crucial for future stability.

References:
[1] https://www.marketbeat.com/stocks/NYSE/CARR/forecast/
[2] https://www.tipranks.com/stocks/carr/forecast