KeyBanc Cuts Carrier Global's Price Target By 10%

• KeyBanc analyst Jeffrey Hammond lowered the price target for Carrier Global Corp (NYSE:CARR) to $54 (an upside of 28.5%) from $60 to reflect broadly lower multiples in the HVAC space.
• The analyst maintained the Overweight rating on the shares.
• According to Hammond, sporadic supply chain challenges remain in the spotlight. The analyst believes supply chain constraints persisted in 1Q22, albeit to varying degrees as the quarter progressed.
• He mentions that contacts have indicated that lead times have improved since late January/early February, especially CARR contacts.
• The analyst is concerned that the Ukraine/Russia conflict and COVID shutdowns in China may reignite inflation/supply chain issues, making the 2H22 setup more difficult.
• Hammond believes CARR will migrate toward, and eventually surpass, premium HVAC rivals over time.
• Price Action: CARR shares are trading higher by 0.57% at $42.02 on the last check Wednesday.