Johnson Controls Downgraded to “Hold” at Deutsche Bank (JCI)


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Automotive interiors maker Johnson Controls, Inc. ( JCI ) on Wednesday caught a downgrade from analysts at Deutsche Bank.

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 trading Wednesday.

The Bottom Line
Shares of Johnson Controls ( JCI ) 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. ( JCI ) is not recommended at this time, holding a 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks

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