Research Alert: CFRA Maintains Buy Opinion On Shares Of Trane Technologies
02:00 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our 12-month target price $5 to $170, applying an EV/EBITDA multiple of 19.0x our 2021 EBITDA estimate. This is a premium to HVAC peers' average multiple of 16.4x. We stay at Buy. TT's solid execution in 2020, reflected by resilient revenue and strong operating leverage, keep us optimistic on TT's ability to outperform in 2021 as end markets continue to improve. After a better-than-expected performance in Q4, we lift our 2021 EPS estimate to $5.48 from $5.35 and start our 2022 estimate at $6.00. TT posts Q4 adj. EPS of $1.03 vs. $0.92 in Q4 2019, beating consensus estimates by $0.10. Sales were flat Y/Y as strong North America residential HVAC sales were offset by decline in commercial HVAC. In 2021, we expect residential HVAC growth to normalize and for commercial HVAC and transport businesses to recover. Lastly, we remain bullish on medium-term opportunities stemming from a potential infrastructure bill with green initiatives, including retrofits to address energy efficiency and indoor air quality.