KeyBanc Cuts Carrier Global's Price Target By 10%

KeyBanc analyst Jeffrey Hammond lowered the price target for Carrier Global Corp CARR to $54 (an upside of 28.5%) from $60 to reflect broadly lower multiples in the HVAC space.
The analyst maintained the Overweight rating on the shares.
According to Hammond, sporadic supply chain challenges remain in the spotlight. The analyst believes supply chain constraints persisted in 1Q22, albeit to varying degrees as the quarter progressed.
He mentions that contacts have indicated that lead times have improved since late January/early February, especially CARR contacts.
The analyst is concerned that the Ukraine/Russia conflict and COVID shutdowns in China may reignite inflation/supply chain issues, making the 2H22 setup more difficult.
Hammond believes CARR will migrate toward, and eventually surpass, premium HVAC rivals over time.
Price Action: CARR shares are trading higher by 0.57% at $42.02 on the last check Wednesday.

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