On Friday, Oppenheimer maintained its Outperform rating and $88.00 price target for Carrier Global (NYSE:CARR) stock, following the company's third-quarter earnings report. Carrier Global's shares experienced a slight decline on Thursday after the company surpassed the consensus estimate for adjusted earnings per share (EPS) in the third quarter, thanks to better margin performance. The firm's guidance for core EPS in fiscal year 2024 remained steady.
The decline in Carrier Global's stock was partially attributed to misunderstandings arising from the company's ongoing portfolio transformation, which now classifies its Fire & Security segment as discontinued operations. Additional factors influencing the stock's performance included a slight softening in the company's Vital Sign Controls (VCS) business and a deceleration in North American orders for September.
Despite these challenges, Oppenheimer's analysis highlighted several positive aspects, such as a 20% year-over-year increase in third-quarter orders and double-digit growth in the backlog. These trends, along with weak comparables in Europe, the Middle East, Africa (EMEA), and the Asia-Pacific (APAC) regions, productivity improvements, and the company's strategies for reducing debt and repurchasing shares, support the potential for over 20% EPS growth by fiscal year 2025.
The analyst's commentary underscored that the unchanged fiscal year 2024 core EPS outlook and the growth framework for fiscal year 2025 remain intact. These factors, coupled with the positive order and backlog trends, suggest that Carrier Global is on track to achieve significant earnings growth in the coming years.
Oppenheimer has revised its estimates for Carrier Global but has decided to maintain the $88 price target. The firm's analysis indicates confidence in Carrier Global's ability to continue its growth trajectory and deliver value to shareholders through the forecasted period.
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