ClearBridge Large Cap Growth Strategy on Ingersoll Rand
Thesis
Ingersoll Rand was purchased as a high-quality industrial compounder with attractive recurring aftermarket revenue. The company provides exposure to automation, energy efficiency and data-center infrastructure. ClearBridge is particularly optimistic about growth in its compressor business. The managers believe the industrial sector can remain resilient despite macroeconomic headwinds associated with the Iran conflict.
“We are optimistic about the company's prospects for growth in its compressor business against a backdrop of resilient growth in the industrial sector”
Key risks
- The Iran conflict presents macroeconomic headwinds to industrial demand.
- Higher fuel costs and elevated oil prices could pressure operating margins.
- Higher interest rates could weaken cyclical industrial sentiment and investment.