Carrier Global Corp: 2Q first look, Resi outlook improves

Research evidence excerpt

Carrier Global Corp: 2Q first look, Resi outlook improves

Forecast returns

Forecast price appreciation 12.5%

Forecast dividend yield 1.3%

Forecast stock return 13.8%

Market return assumption 9.3%

Forecast excess return 4.5%

Company Description

Carrier Global Corporation is a leading global provider of heating, ventilating, air

conditioning (HVAC), refrigeration, and fire and security solutions. Carrier also provides a

broad array of related building services, including audit, design, installation, system

integration, repair, maintenance and monitoring. Operations are divided into three segments:

HVAC, Refrigeration, and Fire & Security.

Valuation Method and Risk Statement

Our price target for CARR is based on relative P/E methodology.

Risk Statement: The Electrical Equipment and Multi Industry sector faces a broad range of

risks. It is cyclical in nature with exposure to the underlying cycles inherent in everything from

aviation, auto, trucking and trains to construction and consumer electronics to mining,

power, oil and gas and more depending on the specific stock. EEMI companies are subject to

risks associated with unexpected changes in the underlying global macro environment,

currency and interest rate movements, commodity price inflation as well as company-specific

execution, M&A, integration, labor relations and changes in the competitive or regulatory

environment. These changes can be in the form of product technology, e-commerce and

other digital disruption and/or channel disintermediation. Capacity and related pricing

pressures are also a risk through the cycle. Finally, these multinational companies are subject

to policy changes taking place in the United States and internationally, including those related

to environmental regulation and tariffs.