CARR - Carrier: Not Too Hot Yet
2024-04-27 10:14:53 ET
Summary
- Carrier Global Corp. is on track to complete its transformation into a pure-play HVAC company this year, selling off non-core businesses.
- Despite short-term headwinds in some residential markets, secular growth opportunities exist in electrification, data center cooling, and aftermarket service.
- Carrier is still valued below HVAC-focused companies like Lennox and Trane, so the shares appear to have upside despite trading near all-time highs.
Transformation Is Underway
The last time I wrote about Carrier Global Corp. (NYSE: CARR ) in December 2023 , the company's plans to transform into a pure-play HVAC company were in place, but the exact timing and details were a bit uncertain. Since then, the company closed its purchase of German premium heat pump and home solar generation system manufacturer Viessman Climate Solutions. Also, sales were announced for businesses in Security , Commercial Refrigeration , and Industrial Fire . These sales are expected to close just after mid-year. The only piece left to sell is Residential and Commercial Fire, and Carrier expects to start marketing the business in the next few weeks for a sale by the end of the year....
Carrier: Not Too Hot Yet