After Johnson Controls (JCI) agreed to acquire Tyco (TYC), RBC Capital says the deal is perfectly logical for Johnson Controls from a strategic perspective. According to RBC, the deal will enable Johnson Controls to benefit form the consolidation trend in building services, give it access to Tyco's tax breaks it receives as a result of its Irish domicile, and enter the multi-industry sector. The firm says that the company's estimate of $650M in tax breaks and synergies look conservative. RBc says that some are saying that the stocks are trading as if another suitor can emerge, but the firm says it cannot identify any "compelling" potential bidders. It raised its price target on Johnson Controls to $38 from $34 but keeps a Sector Perform rating on the shares.