Here’s something of a virtuous cycle in action: yesterday we saw that Goldman Sachs was rating Sirius XM (SIRI) stock as a Buy, in part because of the improving state of the auto industry; today, Johnson Controls (JCI) upped its fiscal year outlook largely for the same reason, and its stock is bouncing up as a result.
Johnson Controls said ahead of its investor meeting that it expects fiscal year 2013 sales and profit to both be about 4% better than 2012, thanks in part to higher auto production in the U.S. and China. That would mean its results will be better than Wall Street expectations. (Perhaps worth noting is the firm’s comments about lower auto production in Europe.)
The stock, which 18 months ago traded in the high $30/low $40 range, is currently a consensus Buy among analysts, according to FactSet, though today’s 3.5% move, to about $30.20, takes it close to its consensus target price of $30.41.
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