AnalystConsensusTarget updated the narrative for JCI

The average analyst price target for Johnson Controls International has increased from $114.95 to $117.89. This reflects growing optimism about the company's outlook as analysts cite improving demand in select segments and recently positive valuation trends.

Analyst Commentary

Recent changes in analyst coverage for Johnson Controls International reflect a dynamic outlook, with both optimism and caution shaping near-term expectations. Price targets have been revised upward as analysts weigh growth prospects, execution risks, and sector trends.

Bullish Takeaways

• Bullish analysts see accelerated growth in certain end markets, particularly driven by strong data center demand. This demand is expected to outpace other segments.
• Recent valuation re-rating is viewed as well justified. Additional equity upside may be supported by further positive earnings revisions.
• Analysts highlight improving sentiment around execution, supported by evidence of operational momentum and positive outlooks for select business lines.
• Rising price targets suggest confidence in management's ability to capitalize on improving demand and deliver sustainable earnings growth.

Bearish Takeaways

• Some bearish analysts maintain a more neutral stance, citing mixed demand trends across certain segments outside of data centers.
• There is caution around the potential for bifurcation in results. Some end-markets may lag even as others outperform.
• Macro uncertainty and variability in industrial activity could weigh on broad-based growth and temper further valuation expansion.

What's in the News

• Alpha Modus Corp. has initiated new patent infringement lawsuits against Johnson Controls International PLC and Sensormatic Electronics LLC, alleging unauthorized use of AI-powered retail analytics technologies in products deployed for major retailers. (Key Developments)
• Johnson Controls and Everbridge, Inc. have expanded their partnership to introduce a portfolio of managed critical event management (CEM) services. This offering integrates advanced AI models to help organizations enhance resilience and operational risk management. (Key Developments)
• The board of directors approved a quarterly dividend increase to $0.40 per share. This continues a consecutive annual dividend payout streak since 1887. The new dividend is payable in October 2025. (Key Developments)
• Johnson Controls launched the Silent-Aire Coolant Distribution Unit platform, which brings scalable liquid cooling solutions to data centers aiming to support higher rack densities and improve facility energy efficiency. (Key Developments)
• The company repurchased nearly 3.8 million shares during the second quarter of 2025, completing over 51% of its ongoing buyback program valued at more than $18.1 billion. (Key Developments)

Valuation Changes

• Consensus Analyst Price Target has increased from $114.95 to $117.89, reflecting a modest uptick in market expectations.
• Discount Rate has decreased slightly from 9.10% to 9.09%, indicating a minimal reduction in perceived risk.
• Revenue Growth projection has declined from 5.09% to 4.87%, indicating a small downward adjustment to the growth outlook.
• Net Profit Margin estimate edged down from 12.20% to 12.04%, suggesting a marginal tightening of profitability assumptions.
• Future P/E ratio has risen from 28.43x to 29.71x, which points to a higher market valuation relative to forward earnings.