Johnson Controls downgraded at Deutsche Bank with investment thesis weakened

As previously reported, Deutsche Bank analyst Nicole Deblase downgraded Johnson Controls to Hold from Buy with a price target of $60, down from $65. While stating that its “not easy to downgrade a stock after multiple years of underperformance” and adding that the firm “could continue to wait for a better exit point,” the analyst no longer feels “that we can pitch JCI with conviction to institutional investors.” The firm has “a hard time getting to even the low end of the range” of the company’s lowered FY24 EPS guidance given that getting there will require a big ramp in both organic growth and margins throughout the rest of the year, the analyst tells investors.