Trane Technologies's (TT) growth algorithm remains unchanged with "top quartile" growth expected for 2025 earnings and revenue, UBS Securities said in an earnings preview Wednesday.
The investment firm said it expects EPS growth of 12% to 15% and revenue growth in the mid-to-high single digits in 2025 as well as an "in-line quarter" in fiscal Q4.
UBS said it forecasts a full-year outlook "similar to consensus EPS of $12.70," and also expects the company to lift its 2025 EPS outlook as the year progresses driven by short-cycle acceleration, operating leverage, and capital deployment potential.
Analysts also said they see "potential for order growth to normalize," with backlog expected to stay high at over $7 billion and an order intake set "to remain very strong."
UBS has a buy rating on Trane Technologies with a $500 price target.
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