Trane Technologies PLC: Blockbuster results; Positive revisions expected

Research evidence excerpt

Trane Technologies PLC: Blockbuster results; Positive revisions expected

Forecast returns

Forecast price appreciation 27.6%

Forecast dividend yield 0.9%

Forecast stock return 28.5%

Market return assumption 9.3%

Forecast excess return 19.2%

Company Description

Trane Technologies plc is a global climate innovator that brings efficient and sustainable

climate solutions to buildings, homes and transportation, driven by strategic brands Trane

and Thermo King, and an environmentally responsible portfolio of products and services.

Valuation Method and Risk Statement

Our price target for TT 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.

Specific to the company, risks include slowing order momentum, continued China market