Johnson Controls International (JCI) is expected to reaffirm its guidance and confidence in its long-term growth algorithm at its Investor Day event on June 1, RBC said in a Tuesday note.
"We expect to hear positive-at-the margin takeaways with insights into the sweeping turnaround being orchestrated by new CEO Joakim Weidemanis," the note said.
The report said the company is also expected to show its successes in lean manufacturing at the event that will include a facilities tour.
In its capital allocation plans, the firm will likely prioritize internal growth investments in research and development, new product introduction, and capacity expansion, the note said. Share purchases and dividends will be considered next, it added.
"We consider the FCF conversion as the most impressive operating improvement at JCI so far," the report said. FCF refers to free cash flow.
RBC has a sector-perform rating with a price target of $154.
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