All of us have certainly heard about the climate bill, which will provide a very fat financial package that could propel many companies quite high. The climate package will send $369 billion to renewable energy and to reduce emissions. On that basis, banking leader Morgan Stanley has introduced us to his favorites that will thrive under this bill. For all the stocks mentioned, MS is raising the target price in view of stronger growth thanks to the climate bill.
Johnson Controls, one of the companies we're going to break down today.
Morgan Stanley on Thursday raised its earnings estimates and price targets for companies that make heating and cooling systems. The investment bank said tax credits and rebates in the tax and climate bill passed by Congress will help boost sales. The Inflation Reduction Act, which President Biden approved last month, includes incentives for the largest investment in energy-efficient products in U.S. history. The law allocates $21 billion in rebates and federal…
The company has seen relatively strong business growth. They have a strong backlog of $11.1 billion. The backlog volume is long term and has steadily increased since 2017. The range of business segments they are involved in includes both residential, commercial and industrial buildings and construction. This means that as long as there is economic activity and ongoing construction or retrofitting of buildings, $JCI should continue to thrive.