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Carrier (CARR) Completes Viessmann Buyout, Bolsters Portfolio

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Carrier Global (CARR - Free Report) has successfully concluded its acquisition of Viessmann Climate Solutions from Viessmann Group. This marks a significant milestone in Carrier's evolution within the intelligent climate and energy solutions sector.  

This acquisition bolsters CARR's position in intelligent climate and energy solutions, propelling it into the forefront of the Residential and Light Commercial space in Europe.

The addition of Viessmann Climate Solutions enhances Carrier's portfolio with highly efficient and renewable climate solutions.

With a focus on a digitally enabled, scalable, end-to-end approach, the firm now stands as a comprehensive provider addressing all facets of home climate and energy needs, including heating, cooling, renewables, solar PV, battery storage and energy management.

Strong Portfolio Aids Prospect

In the past six months, shares of the company have risen 12.3%, outperforming the Zacks Computer and Technology Sector’s 10.3% growth. The uptick is attributed to its strong product portfolio, which is helping it win market share in the sustainable environmental solution domain.  

In December, CARR, through its subsidiary Carrier Transicold, enhanced customer support and environmental sustainability with the relocation of Arras Froid Services to a new 1,300 square-meter facility featuring solar panels, rainwater collection and upcoming electric vehicle charging stations.

It recently bolstered its dedication to sustainability by launching the One DV, One Tree initiative, planting a tree for each AquaEdge 19DV chiller sold in Singapore. This initiative aligned with its 2030 ESG Goals and collaborated with National Parks Board for environmental restoration.

Simultaneously, Carrier introduced i-Vu weather forecasting add-on, enhancing its building automation system with real-time outside air quality data for intelligent control strategies and improved energy efficiency, water usage, and indoor air quality adjustments in response to varying climates.

Divestitures Helps Core Business Focus

Carrier is expected to benefit from portfolio strength and the divestiture of non-core assets.

Management recently announced the sale of its commercial refrigeration business to Haier for an enterprise value of $775 million.

The company also announced the sale of its security business, Global Access Solutions, to Honeywell International.

Carrier aims to enhance its focus on advancing intelligent climate and energy solutions by divesting. This move will allow the company to introduce innovative products aligned with sustainability goals and contribute to decarbonizing the planet for future generations.

CARR’s Guidance Strong

Carrier’s 2023 guidance remains robust thanks to its portfolio strength. It expects sales in the band of $22.1-$22.2 billion with mid-single-digit organic sales growth. The Zacks Consensus Estimate for 2023 revenues is pegged at $22.25 billion, indicating 8.94% growth from a year ago.

Management expects organic sales growth in the container business, commercial refrigeration and the entire Refrigeration segment.

It anticipates earnings to be nearly $2.70 per share. The Zacks Consensus Estimate is pegged at $2.72.

Zacks Rank & Stocks to Consider

Currently, CARR carries a Zacks Rank #4 (Sell).

Camtek (CAMT - Free Report) , Ceridian HCM and Zoom Video Communication (ZM - Free Report) are some better ranked stocks that investors can consider from the broader sector, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CAMT, CDAY and ZM shares have returned 91.7%, 6.5% and 1.3%, respectively, in the past six months.

Long-term earnings growth rates for Camtek, Ceridian HCM and Zoom Video Communication are 12.26%, 44.15% and 33.48%, respectively.

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