Oppenheimer started coverage on Carrier Global Corporation (NYSE:CARR) and gave it an Outperform rating with a $51 price target. The company has performed well since its spin-off from UTC in 2020, and the analysts believe there is potential for even more value creation through various means.
The company now has more freedom to allocate growth capital towards areas such as aftermarket, digital tools, product development, and expanding its footprint. The analysts predict that the company will see increased leverage on its investments through productivity gains, share gains, and the development of new digital capabilities.
Additionally, the analysts believe that portfolio management opportunities could lead to a re-rating of the company’s value, and that its ability to deliver above-average incremental growth and improve free cash flow conversion could help narrow the company’s valuation discount compared to its peers.