JPMorgan Chase Sees a Buying Opportunity in Carrier Global (CARR)
In a recent move that has caught the attention of investors, JPMorgan Chase (JPM) has identified a compelling buying opportunity in Carrier Global (CARR), a leading player in the heating, ventilation, and air conditioning (HVAC) industry. The Wall Street firm has assigned an "Overweight" rating to CARR stock, equivalent to a "Buy" recommendation, with a price target of $78. This target suggests a potential upside of 25% from the stock’s closing price on March 4, 2023. The bullish stance comes as CARR stock has underperformed the broader market, declining 6% year-to-date in 2025. Despite this, JPMorgan remains optimistic about the company’s long-term prospects, positioning it as an attractive investment opportunity for those looking to capitalize on the HVAC sector’s growth.
Stephen Tusa Highlights CARR’s Attractive Valuation
Stephen Tusa, a highly rated analyst at JPMorgan Chase, has been a key driver behind this positive outlook. In a note to clients, Tusa emphasized that CARR stock is undervalued relative to its peers and the broader sector. He pointed out that the stock is currently trading more than 25% below its 52-week high, making it an attractive entry point for investors. Tusa also highlighted that CARR is the most attractive among the top three premium HVAC players, given its relative valuation. He noted that the stock’s price-to-earnings (P/E) ratio of 20.16 is particularly appealing, suggesting that the market has not yet fully recognized the company’s fundamental strength. Tusa’s analysis underscores the disconnect between the stock’s current price and its intrinsic value, presenting a unique opportunity for investors.
Navigating Tariff Uncertainty in the HVAC Sector
Despite the positive outlook, Tusa acknowledged the challenges facing the HVAC industry, particularly the uncertainty surrounding U.S. import tariffs on products from Mexico and Canada. These tariffs have introduced a layer of risk for companies operating in the sector, potentially impacting margins and profitability. However, Tusa remains confident in the long-term growth prospects of the HVAC industry, driven by increasing demand for energy-efficient solutions and infrastructure upgrades. He believes that CARR is well-positioned to navigate these challenges, given its strong market position and operational efficiency. Tusa also noted that the stock is likely at or near its bottom, making it a strategic buy for investors with a long-term perspective.
CARR Stock: A Strong Buy Candidate
The appeal of CARR stock is further reinforced by its performance over the past year. Despite the recent underperformance, the stock has delivered a 13% return over the last 12 months, demonstrating its resilience in a volatile market. This performance is supported by a strong consensus among Wall Street analysts, with a "Strong Buy" rating based on nine "Buy" and three "Hold" recommendations issued in the last three months. The average price target of $81.73 for CARR stock implies a 27.01% upside from current levels, aligning with JPMorgan’s bullish stance. This consensus highlights the confidence of the analyst community in CARR’s ability to deliver strong returns in the near term.
Is CARR Stock a Buy? Analysts Weigh In
For investors considering adding CARR stock to their portfolio, the overwhelming sentiment from Wall Street is clear: this is a stock to watch closely. With a "Strong Buy" rating and a consensus price target significantly higher than its current trading price, analysts are signaling that CARR is undervalued and has ample room for growth. The combination of its attractive valuation, strong industry fundamentals, and long-term growth prospects makes it a compelling choice for investors seeking exposure to the HVAC sector. However, as with any investment, it’s important to consider the broader market conditions and the specific risks associated with the stock, including tariff uncertainties and potential macroeconomic challenges.
Conclusion: A Strategic Investment in the HVAC Sector
In summary, JPMorgan Chase’s bullish rating on CARR stock presents a timely opportunity for investors to capitalize on the undervalued shares of a leading HVAC company. With a strong analyst consensus, attractive valuation, and long-term growth potential, CARR stock stands out as a strategic addition to any portfolio. While the uncertainty surrounding tariffs may pose a short-term challenge, the company’s strong market position and operational efficiency position it well to navigate these headwinds. For investors looking to maximize their returns in a competitive market, Carrier Global (CARR) is undoubtedly worth considering.
