Johnson Controls, Inc. (JCI)

Johnson Controls (<a href=http://www.zacks.com/stock/quote/jci>JCI</a>) is suffering from a weakness in its North American business, high inventory levels at the OEMs, weakening product mix, and raw material/ price squeeze. Rapid deterioration in automotive production coupled with worsening residential market raise concern. <p> As foreseen, Johnson reported losses in the second quarter of fiscal 2009. The company expects a return to profitability in the second half of fiscal 2009. These lead us to rate the stock a Sell with a target of $12.00. <p> Currently, Johnson Controls shares are trading at approximately 15.8x our 2010 estimate of $1.11. Our target price is 10.8x our 2010 EPS estimate.

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