Carrier Global: RBC Capital Lowers Price Target to $86, Maintains Outperform Rating

Carrier Global Corporation (NYSE: CARR), a leading provider of heating, ventilation, and air conditioning (HVAC), refrigeration, and fire and security solutions, has seen its price target lowered by RBC Capital to $86 from $87. However, the firm maintains an Outperform rating on the shares, indicating a positive outlook on the company's prospects. This article explores the reasons behind the price target adjustment and the implications for potential investors.



RBC Capital's decision to lower the price target for Carrier Global comes amidst a broader research note previewing 2025 for the Multi-Industry sector. The analyst highlights several secular drivers that remain powerful growth drivers for the sector, including electrification, reshoring, and datacenters. Additionally, the analyst expects a pro-business environment under a potential Trump 2.0 administration, with tariffs being a manageable risk.

Despite these positive factors, the analyst acknowledges that market volatility and geopolitical uncertainties may impact the company's performance. The lowered price target suggests that RBC Capital is factoring in these uncertainties into their outlook for Carrier Global. However, the firm's Outperform rating indicates that they still believe the stock will outperform the broader market.



The lower price target reflects RBC Capital's revised expectations for Carrier Global's growth prospects and valuation. While the firm still sees the company as a strong performer, the slight reduction in the price target suggests that they have reassessed their expectations for the stock's future growth. This could be due to a variety of factors, such as a reassessment of the impact of secular drivers on the company's growth trajectory, changes in market sentiment, or a shift in the analyst's valuation methodology.

The new price target of $86 also reflects RBC Capital's assessment of Carrier Global's current valuation. The firm may have determined that the stock is now overvalued at the previous target price of $87, given the company's current fundamentals and growth prospects. By lowering the target to $86, RBC is signaling that they believe the stock is more fairly valued at this price point.



In conclusion, RBC Capital's decision to lower the price target for Carrier Global to $86 while maintaining an Outperform rating reflects the firm's revised expectations for the company's growth prospects and valuation. The analyst's positive outlook on the company's prospects, driven by secular drivers and a pro-business environment, is tempered by market volatility and geopolitical uncertainties. Potential investors should consider the implications of the price target adjustment and the firm's overall assessment of Carrier Global's prospects when making investment decisions.

Important note: Investors are reminded to do their due diligence and not rely on the information provided as financial advice. Please always apply independent thinking and note that the rating is not intended to time a specific entry/exit at the point of writing unless otherwise specified.