Credit Suisse Group AG reissued their hold rating on shares of United Technologies Corp. (NYSE:UTX) in a research note issued to investors on Friday morning. Credit Suisse Group AG currently has a $109.00 target price 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.
A number of other brokerages have also issued reports on UTX. Bank of America Corp. reissued a buy rating and issued a $130.00 target price (up previously from $115.00) on shares of United Technologies Corp. in a research report on Wednesday, July 27th. Jefferies Group reissued a buy rating and issued a $118.00 target price on shares of United Technologies Corp. in a research report on Wednesday, July 27th. Barclays PLC lifted their target price on United Technologies Corp. from $108.00 to $110.00 and gave the company an equal weight rating in a research report on Wednesday, July 27th. Stifel Nicolaus reissued a hold rating on shares of United Technologies Corp. in a research report on Sunday, July 31st. Finally, Zacks Investment Research raised United Technologies Corp. from a sell rating to a hold rating in a research report on Friday, July 22nd. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus target price of $110.71.
Shares of United Technologies Corp. (NYSE:UTX) opened at 101.43 on Friday. United Technologies Corp. has a 12-month low of $83.39 and a 12-month high of $109.83. The firm has a 50-day moving average price of $104.69 and a 200-day moving average price of $103.27. The firm has a market cap of $84.89 billion, a price-to-earnings ratio of 11.96 and a beta of 1.11.
United Technologies Corp. (NYSE:UTX) last released its quarterly earnings results on Tuesday, July 26th. The company reported $1.82 EPS for the quarter, topping the Zacks’ consensus estimate of $1.68 by $0.14. The company had revenue of $14.90 billion for the quarter, compared to analyst estimates of $14.67 billion. United Technologies Corp. had a return on equity of 18.14% and a net margin of 12.79%. United Technologies Corp.’s revenue was up 1.3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.81 earnings per share. Equities research analysts anticipate that United Technologies Corp. will post $6.58 EPS for the current year.
In other news, VP Charles D. Gill sold 6,202 shares of the stock in a transaction on Thursday, August 11th. The stock was sold at an average price of $109.00, for a total transaction of $676,018.00. Following the sale, the vice president now directly owns 51,778 shares of the company’s stock, valued at approximately $5,643,802. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Robert J. Mcdonough sold 3,100 shares of the stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $107.11, for a total value of $332,041.00. Following the sale, the insider now directly owns 11,349 shares in the company, valued at $1,215,591.39. The disclosure for this sale can be found here. 0.15% of the stock is owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in the company. HHG & Company LLC raised its stake in United Technologies Corp. by 3.5% in the first quarter. HHG & Company LLC now owns 26,044 shares of the company’s stock valued at $2,607,000 after buying an additional 880 shares during the period. FirstMerit Bank N A Trustee raised its stake in United Technologies Corp. by 2.2% in the first quarter. FirstMerit Bank N A Trustee now owns 87,555 shares of the company’s stock valued at $8,765,000 after buying an additional 1,861 shares during the period. Howard Capital Management raised its stake in United Technologies Corp. by 2.9% in the first quarter. Howard Capital Management now owns 13,328 shares of the company’s stock valued at $1,334,000 after buying an additional 371 shares during the period. Dividend Asset Capital LLC raised its stake in United Technologies Corp. by 0.7% in the first quarter. Dividend Asset Capital LLC now owns 568,289 shares of the company’s stock valued at $56,886,000 after buying an additional 4,151 shares during the period. Finally, Traynor Capital Management Inc. raised its stake in United Technologies Corp. by 160.6% in the first quarter. Traynor Capital Management Inc. now owns 6,655 shares of the company’s stock valued at $666,000 after buying an additional 4,101 shares during the period. 80.18% of the stock is currently owned by institutional investors.
United Technologies Corp. Company Profile
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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