As previously reported, Melius Research analyst Scott Davis upgraded Trane (TT) to Buy from Hold with a $490 price target, with the catalyst in part being yesterday’s correction following comments from Nvidia (NVDA) at CES around future cooling architectures that will reduce, or potentially eliminate, the need for chillers. While the firm does not expect this “smart” evolution to be as negative for cooling suppliers as the stock reactions would suggest, the drivers of the current applied HVAC “supercycle” are “far broader than just data center,” contends the analyst, who also upgraded Johnson Controls (JCI) to Buy on the same rationale.
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