Morgan Stanley Starts Trane Technologies (TT) at Overweight, Top Pick

Morgan Stanley analyst Chris Snyder initiates coverage on Trane Technologies (NYSE: TT) with a Overweight rating and a price target of $425.00.

The analyst comments "We view Trane as the highest-quality business across US Industrials, offering the most attractive combination of growth (HSD+ organic) and durability (30%+ service), both of which are strengthened by outsized exposure to a number of key industrial mega-trends. We model organic +200 bps vs Consensus, driving MSD upside and arguing for multiple expansion on sustained strength. TT is the industry's leading innovator, driven by a relentless rate of reinvestment into the business - pushing the envelope on energy efficiency while driving improved paybacks for customers. Post inflation reset, the value add (i.e., customer payback) on high-efficiency equipment has improved - a backdrop that favors TT as the industry's leading innovator and one that we believe allows for sustained HSD organic growth (vs Cons +MSD) and high 20% incremental margins (vs Cons mid 20s)."

For an analyst ratings summary and ratings history on Trane Technologies click here. For more ratings news on Trane Technologies click here.

Shares of Trane Technologies closed at $342.91 yesterday.

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