Positive Outlook on Honeywell International’s Strategic Business Transformation and Growth Potential: A Buy Recommendation
Honeywell International (HON – Research Report), the Industrials sector company, was revisited by a Wall Street analyst yesterday. Analyst Andrew Obin from Bank of America Securities remains neutral on the stock and has a $265.00 price target.
Andrew Obin’s Buy rating for Honeywell International (HON) is based on a variety of factors.Firstly, he observed that the company’s portfolio transformation is in accordance with previous expectations. This includes the company’s decision to divest approximately 10% of its portfolio and the subsequent plan to monetize Quantinuum through either an IPO or sale in the next year and a half. Obin views these changes positively, as they demonstrate HON’s commitment to long-term targets and the company’s ability to execute solidly. He also notes that despite HON’s high-quality performance, it still trades at a discount compared to its peers.
Obin also commends the company’s strategic decision to divest pieces that do not align with the new business structure, which he believes will likely be a positive catalyst. Furthermore, the CEO’s commitment to add value to each of the company’s businesses, rather than breaking up the company, is seen as a positive by Obin. Lastly, Obin is optimistic about the company’s decision to realign its segments in 1Q24, believing it will streamline operations and potentially increase sales. Even though he has slightly lowered the adjusted EPS for 2024, Obin maintains his Buy rating, indicating his belief in HON’s strategic decisions and future growth potential.
In another report released on October 6, J.P. Morgan also maintained a Buy rating on the stock with a $238.00 price target.
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Honeywell International (HON) Company Description:
Founded in 1885, North Carolina-based Honeywell International, Inc. is a technology and manufacturing company. It provides industry specific solutions including aerospace and automotive products and services; control technologies for buildings and homes; and performance materials. It operates through four segments, including Aerospace; Honeywell Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions.
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