Carrier, Eaton upgraded at Wolfe in electrical equipment shuffle (NYSE:CARR)

Carrier Global (NYSE:CARR) +1% in Friday’s trading as Wolfe Research upgrades to Peer Perform from Underperform, viewing the company’s HVAC and Refrigeration end markets as attractive growth avenues with ESG themes related to energy efficiency and CO2 abatement.

Wolfe’s Nigel Coe says Carrier’s (CARR) U.S. residential HVAC business could benefit from the transition to R-454B, as these systems are expected to carry 10%-15% higher price points, also with scope for improving price/cost fundamentals as lower steel and copper commodity costs continue deep into 2025 due to hedging.

Coe also upgrades Eaton (NYSE:ETN) to Peer Perform from Underperform following the stock’s recent underperformance from the bursting of the AI investor bubble.

The analyst believes Eaton (ETN) can maintain a premium growth outlook, driven by electrification investments across a broad range of the economy and benefits from reshoring and infrastructure-related stimulus that have been driving backlog to record levels.