Trane Technologies' (TT) 2025 consensus revenue estimates are too low with the Irish company expected to benefit from "key secular growth trends" paced by expanding data centers for artificial intelligence, UBS Securities said Tuesday in a report.
The company's leadership position in applied solutions for heating, ventilation and air conditioning (HVAC) indicates "long tail benefits" from the trend toward "bigger and more complex systems," UBS said.
Based on order trends, UBS estimated a low single digit percentage upside to the 2025 revenue outlook.
"This is occurring against a backdrop of still lackluster industrial activity and weakness in China, implying further upside to our above-consensus forecasts in a broader recovery scenario," the report said.
UBS initiated coverage of Trane Technologies with a buy rating and a stock target of $500.
Trane Technologies shares rose 2.1% in recent Wednesday trading.
Price: 419.61, Change: +8.46, Percent Change: +2.06
Comments