United Technologies Corp. (UTX) Receives “Hold” Rating from Credit Suisse Group AG
Credit Suisse Group AG reissued their hold rating on shares of United Technologies Corp. (NYSE:UTX) in a research report sent to investors on Friday. The brokerage currently has a $109.00 price target on the stock.
“We continue to think consensus EPS for overall UTX is ~$0.30 too high for 2018 (see our recent deep-dive report Cutting estimates on Otis), and ongoing downwards pressure will likely mean that the valuation multiple, while relatively low, struggles to expand. We therefore retain our Neutral rating. 2017 commentary suggests gross margin pressure will persist in China… One of our main concerns on Otis is the China price war intensification evident YTD among OEMs, and the fact that this has not yet manifested in the Otis P&L. As this year’s orders (better volume market share for Otis, but worse pricing) start to be billed as sales, we think gross margins will struggle in 2017. Kone’s comments suggest that next year will see some moderation in the OE unit order declines in China (after a 5-10% decline in 2016), but declines are still likely (while property trends have shown stabilization this year, developers remain very cautious), and there may be no relief in pricing, with ‘competition to remain intense’. Hence, we could see this gross margin pressure persist for Otis through 2018.”,” the firm’s analyst wrote.
Several other equities analysts have also issued reports on UTX. Jefferies Group reiterated a buy rating on shares of United Technologies Corp. in a report on Tuesday, July 5th. Barclays PLC lifted their target price on shares of United Technologies Corp. from $108.00 to $110.00 and gave the company an equal weight rating in a report on Wednesday, July 27th. Stifel Nicolaus reiterated a hold rating on shares of United Technologies Corp. in a report on Sunday, July 31st. Zacks Investment Research lowered shares of United Technologies Corp. from a hold rating to a sell rating in a report on Tuesday, September 27th. Finally, Bank of America Corp. reiterated a buy rating and set a $130.00 target price (up from $115.00) on shares of United Technologies Corp. in a report on Wednesday, July 27th. One analyst has rated the stock with a sell rating, nine have issued a hold rating and seven have assigned a buy rating to the stock. The company currently has an average rating of Hold and a consensus target price of $110.71.
United Technologies Corp. (NYSE:UTX) opened at 101.60 on Friday. The stock has a 50 day moving average price of $105.11 and a 200 day moving average price of $103.14. United Technologies Corp. has a 12-month low of $83.39 and a 12-month high of $109.83. The company has a market capitalization of $85.03 billion, a price-to-earnings ratio of 11.98 and a beta of 1.11.
United Technologies Corp. (NYSE:UTX) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $1.82 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.68 by $0.14. United Technologies Corp. had a net margin of 12.79% and a return on equity of 18.14%. The business earned $14.90 billion during the quarter, compared to analyst estimates of $14.67 billion. During the same period last year, the business posted $1.81 earnings per share. United Technologies Corp.’s quarterly revenue was up 1.3% compared to the same quarter last year. On average, analysts expect that United Technologies Corp. will post $6.58 EPS for the current year.
In related news, insider Robert J. Mcdonough sold 3,100 shares of the company’s stock in a transaction dated Thursday, July 28th. The shares were sold at an average price of $107.11, for a total transaction of $332,041.00. Following the transaction, the insider now directly owns 11,349 shares in the company, valued at approximately $1,215,591.39. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Charles D. Gill sold 6,202 shares of the company’s stock in a transaction dated Thursday, August 11th. The shares were sold at an average price of $109.00, for a total transaction of $676,018.00. Following the transaction, the vice president now owns 51,778 shares in the company, valued at $5,643,802. The disclosure for this sale can be found here. Insiders own 0.15% of the company’s stock.
Institutional investors have recently modified their holdings of the stock. Chicago Partners Investment Group LLC purchased a new position in shares of United Technologies Corp. during the second quarter valued at approximately $103,000. Coconut Grove Bank increased its position in shares of United Technologies Corp. by 5.8% in the second quarter. Coconut Grove Bank now owns 1,037 shares of the company’s stock valued at $106,000 after buying an additional 57 shares during the last quarter. Tortoise Investment Management LLC increased its position in shares of United Technologies Corp. by 6.1% in the second quarter. Tortoise Investment Management LLC now owns 1,065 shares of the company’s stock valued at $109,000 after buying an additional 61 shares during the last quarter. Thomas J. Herzfeld Advisors Inc. increased its position in shares of United Technologies Corp. by 181.1% in the second quarter. Thomas J. Herzfeld Advisors Inc. now owns 1,071 shares of the company’s stock valued at $110,000 after buying an additional 690 shares during the last quarter. Finally, Orrstown Financial Services Inc. increased its position in shares of United Technologies Corp. by 35.6% in the second quarter. Orrstown Financial Services Inc. now owns 1,085 shares of the company’s stock valued at $111,000 after buying an additional 285 shares during the last quarter. Institutional investors own 80.18% of the company’s stock.
About United Technologies Corp.
United Technologies Corporation is engaged in providing high technology products and services to the building systems and aerospace industries around the world. The Company operates through four segments: Otis; UTC Climate, Controls & Security; Pratt & Whitney, and UTC Aerospace Systems. Its Otis segment designs, manufactures, sells and installs a range of passenger and freight elevators, as well as a line of escalators and moving walkways.
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