Holden Henry
I reiterated a Strong Buy rating on Carrier Global Corporation (NYSE:CARR) in October 2024, highlighting its strong order growth. Carrier delivered a strong quarterly result, beating the market expectations. I reiterate a Strong Buy
Carrier Global Q1: Strong Margin Improvement
Summary
- I reiterate a "Strong Buy" on Carrier Global Corporation, highlighting strong order growth, margin expansion, and a fair value of $83 per share.
- Carrier's 2% organic revenue growth and productivity optimization, along with cost synergies from Viessmann Climate Solutions, drive strong margin improvements.
- Carrier's pricing power mitigates tariff impacts, and high-single-digit order growth supports future revenue growth despite challenges in the Asia Pacific region.
- I forecast 7.6% total revenue growth from FY26 onwards, driven by organic growth, pricing increases, and strategic M&A, aligning with CARR management's guidance.
I am a growth-oriented investor, conducting fundamental research. Long-term focus, independent thinking. I prefer companies with deep moats and high recurring sales growth.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of CARR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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