Automotive interiors maker Johnson Controls, Inc. (
) on Wednesday caught a downgrade from analysts at Deutsche
The firm said it downgraded JCI from "Buy" to "Hold" based on
the stock's current valuation.
A Deutsche analyst commented, "Shares are within 3% of our $40
target (14x our FY12 EPS est). Based on discussions with mgmt over
the past few days, we believe that the business outlook provided by
JCI mgmt at their Oct 11 Analyst Meeting remains intact. We believe
that much of this positive outlook is reflected in JCI's valuation
(16.3x/13.7x FY11/FY12 EPS; EV is 10.6x/9.3x FY11/FY12 EBITDA).
While there could be upside to our ests from accretive use of the
company's cash, we currently see more favorable risk/reward
elsewhere within our coverage universe."
Johnson Controls shares fell 56 cents, or -1.4%, in premarket
The Bottom Line
Shares of Johnson Controls (
) have a 1.64% dividend yield, based on last night's closing stock
price of $39.00. The stock has technical support in the $35-$36
price area. If the shares can continue to track higher, we see
overhead resistance around the $43 price level.
Johnson Controls, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.4 out of 5 stars.
Be sure to visit our complete recommended list of the
Best Dividend Stocks
, as well as a detailed explanation of
our ratings system here
Created by Dividend.com