Carlisle Companies: Cyclical Construction Recovery Supports Valuation Upside

Carlisle Companies is a compelling Buy at $374, with a target price of $428 and 14% upside, driven by anticipated Fed rate cuts and construction recovery. CSL's Q4 and 2025 results exceeded revenue and EPS expectations, but margins contracted due to weak construction and rising costs; free cash flow and capital returns remain robust. Management and consensus expect a soft Q1 and flat H1 2026, with revenue and margin growth resuming in H2 2026 as construction activity rebounds.