What Are Wall Street Analysts' Target Price for Trane Technologies Stock?

Valued at a market cap of $92.7 billion, Trane Technologies plc (TT) is a climate-innovation and industrial manufacturing company that designs, builds, and services energy-efficient Heating, Ventilation, Air-Conditioning (HVAC) systems and transport-refrigeration solutions. The Swords, Ireland-based company, focuses on sustainable, low-carbon technologies for buildings, homes, and cold-chain logistics, aiming to reduce customer emissions. 

Shares of this industrial manufacturing company have lagged behind the broader market over the past 52 weeks. TT has gained 2% over this time frame, while the broader S&P 500 Index ($SPX) has soared 13.2%. Moreover, on a YTD basis, the stock is up 13.2%, compared to SPX’s 14.5% return.

However, zooming in further, TT has outperformed the SPDR S&P Homebuilders ETF (XHB), which has declined 11.5% over the past 52 weeks and 1.1% on a YTD basis. 

On Oct. 30, shares of TT surged 4.4% after delivering its mixed Q3 earnings results. While the company's net revenue improved 5.6% year-over-year to $5.7 billion, it missed consensus estimates by a slight margin. Nonetheless, profitability remained strong, with its adjusted operating margin improving by a notable 170 basis points from the year-ago quarter and adjusted EPS of $3.88 climbing 15.1% and coming in 2.6% ahead of analyst expectations. Moreover, TT achieved all-time-high quarterly bookings of $6 billion, up 14.7% annually, driven by robust demand in its commercial HVAC segment, further bolstering investor confidence. 

For the current fiscal year, ending in December, analysts expect TT’s EPS to grow 16% year over year to $13.02. The company’s earnings surprise history is promising. It exceeded the consensus estimates in each of the last four quarters. 

Among the 21 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on seven “Strong Buy,” 13 "Hold,” and one "Strong Sell” rating.

This configuration is slightly more bullish than a month ago, with six analysts suggesting a “Strong Buy” rating.

On Nov. 13, Bank of America Corporation (BAC) analyst Andrew Obin upgraded TT to “Buy” and raised its price target to $550, the Street-high price target, indicating a 31.5% potential upside from the current levels. 

The mean price target of $481.65 represents a 15.2% premium from TT’s current price levels.