CARR - Daikin's Global HVAC Franchise Is One To Watch

• Management expects COVID-19 to weigh on results for at least a year, but the company did recently raise FY'21 operating income expectations by 16% on better underlying cost performance.
• Daikin is unusual among HVAC companies with strong internal R&D efforts in areas like inverters, filtration, heat pump technology, and leverages this to develop market-tailored product portfolios.
• Daikin is well-placed to participate in EU/US green building retrofits, but is also well-placed in the growing Chinese AC market and the emerging AC markets of Asia ex-Japan/China.
• Although Daikin shares aren't as cheap as I might like, a high single-digit prospective long-term annualized return isn't bad today.

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