UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Johnson Controls on Valuation

In a report published Tuesday, Deutsche Bank analyst Greg Poole reiterated a Hold rating on

, and raised the price target from $52.00 to $53.00. In the report, Deutsche Bank noted, “Johnson Controls provided a few more details of their Interiors divestiture. The JV is expected to be somewhat more profitable than we initially expected. JCI indicated that they expect the new division to achieve a 5-6% pretax margin ‘On Day 1'. This is better than we initially expected. Applying a 5% net margin to $7.5 bn of combined interiors business would imply $375 MM of net income for the JV, and $120-$130MM of equity earnings ($0.18-$0.20 EPS) for JCI on a run rate basis. Our earnings model excluded earnings from Interiors starting in 2015, as we expected the business to be divested. So we are fine-tuning our F2015 estimates to reflect this change (our 2015 EPS est goes to $3.55 from $3.45). We maintain our Hold rating based on valuation.” Johnson Controls closed on Monday at $46.69.