Morgan Stanley raises price targets for equipment makers as climate bill incentivizes investment in energy-efficient products
智通财经2022-09-02
Morgan Stanleysaid tax cuts and rebates in the tax and climate bills passed by the U.S. Congress will help boost sales, and on Thursday raised earnings estimates and price targets for heating and cooling system manufacturers. The largest investment in energy-efficient products in U.S. history is understood to have been incentivized by the Inflation Reduction Act, approved by U.S. President Joe Biden last month, which sets aside $21 billion for tax rebates and federal tax breaks to improve people's housing energy efficiency over the next 10 years.Morgan Stanley analyst Joshua Pokrzywinski said in the report that the biggest revenue growth for equipment manufacturers will come from homes that have replaced air conditioners and furnaces with heat pumps. A heat pump is an all-in-one device that cools and heats a house more efficiently. Pokrzywinski said: "Heat pump technology has been improving over the past decade and is likely to be adopted in more regions."
Shares of the heating and cooling system makers mentioned in Morgan Stanley's report were reported to have risen on Thursday,Reynolds(LII.US) led the gains with a 3.64% gain,Johnson Controls(JCI.US) closed up 2.79%, Trane Technologies (TT.US) closed up 2.23%,Carrier Global(CARR.US) closed up 1.71% and Huasco (WSO.US) closed up 0.72%.
As shown in the table above, Morgan Stanley raised its price targets on all of these stocks and gave Johnson Controls, Carrier Global and Trane Technologies "overweight" ratings.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
