In a report released today, Erik Woodring from Morgan Stanley maintained a Buy rating on Resideo Technologies, with a price target of $40.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Erik Woodring has given his Buy rating due to a combination of factors that highlight the potential for Resideo Technologies’ stock. Despite a recent underperformance in the third quarter and a slightly lowered fourth-quarter guidance, Woodring sees these challenges as temporary. The management’s explanation of the headwinds being transitory and their consistent track record of executing above expectations provide confidence in the company’s future performance.
Moreover, the anticipated ADI spin-off in the second half of 2026 is expected to unlock significant value, as the separation of assets could enhance their individual potential. Woodring also notes that the company’s long-term margin targets should exert upward pressure on the stock. Consequently, the price target has been adjusted to $40, reflecting a belief in the stock’s modest upside potential and reinforcing the Buy recommendation.