Carrier Global Initiated with Outperform Rating at Oppenheimer

• Automated Logic – Canada, Ltd. (ALC), a subsidiary of Carrier Global Corporation (NYSE:CARR), acquires Control Solutions, Ltd. (CSL) to establish its first company-owned controls field office in Vancouver.
• The acquisition enhances ALC's presence in the intelligent building-automation sector in Western Canada, leveraging CSL's expertise in building automation systems.
• Carrier Global Corporation reports strong financial performance with earnings per share of $0.92 and revenue of approximately $6.11 billion, reflecting investor confidence.

Automated Logic – Canada, Ltd. (ALC), a subsidiary of Carrier Global Corporation (NYSE:CARR), has made a strategic acquisition of Control Solutions, Ltd. (CSL), a company based in Coquitlam, British Columbia. This acquisition establishes ALC's first company-owned controls field office in Vancouver, enhancing its presence in the intelligent building-automation sector in Western Canada. Carrier Global Corporation, the parent company, is a major player in the global building and cold chain solutions market.

The acquisition of CSL is a significant move for ALC, as it strengthens its footprint in Canada. Andy Bierer, Managing Director of ALC Field, highlights that this strategic move enhances ALC's capability to deliver integrated, intelligent building solutions in high-growth sectors across British Columbia. CSL is known for its expertise in designing, installing, and servicing building automation systems for complex facilities, including commercial real estate, education, data centers, residential, and large mixed-use developments.

CSL employs over 100 professionals who provide advanced building automation and control solutions, retrofit upgrades, and multi-year service contracts. These services aim to optimize energy performance and operational resilience, aligning with ALC's goals. The existing leadership and employees of CSL will continue to operate from their Coquitlam office, ensuring continuity of service to their customers across the province.

Chad Thomas, President, and Eddie McCool, CEO of CSL, expressed enthusiasm about joining Automated Logic. They highlighted the shared commitment to innovation and quality, which will enable them to deliver greater value to customers throughout British Columbia and beyond. The financial terms of the transaction were not disclosed, but the acquisition aligns with Carrier Global Corporation's strong financial performance.

Carrier Global Corporation recently reported earnings per share of $0.92, surpassing the estimated $0.906, as highlighted by their financial report on July 29, 2025. The company also reported revenue of approximately $6.11 billion, slightly exceeding analyst estimates. Carrier Global Corporation, trading under the symbol CARR on the NYSE, reached a high of $68, reflecting investor confidence in its strategic moves, including the acquisition of CSL.

Carrier Global Corporation (NYSE:CARR) is a leading provider of heating, ventilating, and air conditioning (HVAC) systems, as well as refrigeration and fire and security solutions. The company is set to release its quarterly earnings on February 11, 2025. Analysts expect an earnings per share (EPS) of $0.51 and revenue of approximately $5.2 billion.

Carrier's performance is expected to be driven by strong growth in its HVAC segment and robust aftermarket services. However, challenges in Europe and China may have posed difficulties. The Zacks Consensus Estimate for the fourth quarter is $0.51 per share, reflecting a slight increase over the past month but a year-over-year decline of 3.77%. Revenue is estimated at $5.43 billion, a 6.42% increase from the previous year.

Carrier has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 8.19%. Investors are keen to see if this trend continues. The company's earnings are expected to decline by 3.8% compared to the previous year, but revenues are projected to increase by 6.4%, reaching $5.43 billion. Recent downward revisions in EPS estimates by 3.9% highlight analysts' reassessment of initial projections.

The company's financial metrics provide insights into its valuation. Carrier's price-to-earnings (P/E) ratio is approximately 16.56, and its price-to-sales ratio is about 2.39. The enterprise value to sales ratio is around 2.84, and the enterprise value to operating cash flow ratio is approximately 45.49. The earnings yield is about 6.04%, and the debt-to-equity ratio is approximately 0.88, indicating a moderate level of debt relative to equity. Carrier's current ratio of about 1.08 suggests its ability to cover short-term liabilities with short-term assets.

Carrier Global Corporation (NYSE:CARR) is a leading provider of heating, ventilating, and air conditioning (HVAC) systems, as well as refrigeration and fire and security solutions. The company is set to release its quarterly earnings on February 11, 2025. Analysts expect an earnings per share (EPS) of $0.51 and revenue of approximately $5.2 billion.

Carrier's performance is expected to be driven by strong growth in its HVAC segment and robust aftermarket services. However, challenges in Europe and China may have posed difficulties. The Zacks Consensus Estimate for the fourth quarter is $0.51 per share, reflecting a slight increase over the past month but a year-over-year decline of 3.77%. Revenue is estimated at $5.43 billion, a 6.42% increase from the previous year.

Carrier has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average earnings surprise of 8.19%. Investors are keen to see if this trend continues. The company's earnings are expected to decline by 3.8% compared to the previous year, but revenues are projected to increase by 6.4%, reaching $5.43 billion. Recent downward revisions in EPS estimates by 3.9% highlight analysts' reassessment of initial projections.

The company's financial metrics provide insights into its valuation. Carrier's price-to-earnings (P/E) ratio is approximately 16.56, and its price-to-sales ratio is about 2.39. The enterprise value to sales ratio is around 2.84, and the enterprise value to operating cash flow ratio is approximately 45.49. The earnings yield is about 6.04%, and the debt-to-equity ratio is approximately 0.88, indicating a moderate level of debt relative to equity. Carrier's current ratio of about 1.08 suggests its ability to cover short-term liabilities with short-term assets.

Carrier Global (NYSE:CARR) shares rose more than 3% intra-day today after Citi analysts upgraded the company to Buy from Neutral, raising their price target to $74 on the stock.

The upgrade is based on several key factors and assumptions. They project an expected EPS of $3.10 in 2025, translating to a price target of $74, which is based on a 24x multiple of the expected EPS.

The analysts anticipate that Carrier Global will be largely through its transformation process by the start of 2025, positioning it as a focused “pure play” HVAC company with an improving valuation multiple. They acknowledge the known headwind from Viessmann's weakness, which accounts for approximately mid-teens percentage of Carrier’s projected fiscal 2024 revenue. However, they expect that synergies from the Viessmann acquisition and broader productivity initiatives will largely offset this weakness.

The analysts forecast that core markets for Carrier should grow at mid-single digits over the next few years, with the U.S. residential and global transportation sectors reaching a bottom while the commercial HVAC sector remains robust. While the analysts note that Carrier is still a work in progress and improvement may not follow a straight line, they commend the company for being well-managed with a leading market share in a highly favored end market, seeing potential for further upside.