Cautious Optimism: Evaluating Carrier Global’s Ambitious Growth Targets Amid Market Skepticism

Christopher Snyder, an analyst from Morgan Stanley, maintained the Hold rating on Carrier Global (CARR – Research Report). The associated price target is $78.00.

Christopher Snyder has given his Hold rating due to a combination of factors, primarily focusing on the ambitious growth targets set by Carrier Global. The company has outlined a mid-teens EPS CAGR and 6-8% organic growth, which, if achieved, could justify a higher PE multiple. However, there is skepticism in the market about the feasibility of these targets, especially considering past performance where the company missed its organic growth goals due to market declines in specific regions.
Despite these challenges, there are reasons for optimism. Carrier Global has significantly increased its R&D spending, which could enhance its competitive position, particularly in the Data Center market. Additionally, the company’s focus on Commercial HVAC services is seen as a promising long-term growth opportunity. While the growth projections are optimistic, the market’s cautious stance reflects concerns about potential risks in key markets, such as the Americas Residential and Light Commercial sectors.

In another report released yesterday, Deutsche Bank also maintained a Hold rating on the stock with a $81.00 price target.

CARR’s price has also changed slightly for the past six months – from $74.500 to $74.950, which is a 0.60% increase.