Climate bills incentivize investment in energy-saving products; Morgan Stanley raises target prices for equipment manufacturers.
智通财经2022-09-02
Morgan StanleyIt stated that tax cuts and rebates in the tax and climate bills passed by the U.S. Congress would help boost sales, and on Thursday raised its earnings forecasts and price targets for heating and cooling system manufacturers. It is understood that the Inflation Reduction Act, approved by US President Biden last month, has incentivized the largest investment in energy-saving products in US history. The bill allocates $21 billion for tax rebates and federal tax credits to improve energy efficiency in people's homes over the next 10 years.In a report, Morgan Stanley analyst Joshua Pokrzywinski stated that the biggest revenue growth for equipment manufacturers will come from homes replacing air conditioners and furnaces with heat pumps. A heat pump is an all-in-one device that can cool and heat a house more efficiently. Pokrzywinski stated, "Heat pump technology has been continuously improved over the past decade, and it is possible that it will be adopted in more regions."
According to reports, the stock prices of the heating and cooling system manufacturers mentioned by Morgan Stanley in the report all rose on Thursday, and by the close of trading on Thursday,Reynolds(LII.US) led the gains with a 3.64% increase.Johnson Automation(JCI.US) closed up 2.79%, and Trane Technologies (TT.US) closed up 2.23%.Carrier Global(CARR.US) closed up 1.71%, and Wasco (WSO.US) closed up 0.72%.
As shown in the table above, Morgan Stanley raised its target prices for these stocks and gave Johnson Controls, Carrier Global, and Trane Technologies "overweight" ratings.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
