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Cautious Hold Rating for Honeywell International Amid Mixed Sector Signals and Structural Changes

Cautious Hold Rating for Honeywell International Amid Mixed Sector Signals and Structural Changes

Analyst Joe O’Dea of Wells Fargo maintained a Hold rating on Honeywell International (HONResearch Report), reducing the price target to $220.00.

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Joe O’Dea has given his Hold rating due to a combination of factors. Firstly, the guidance provided by Honeywell International came in below expectations, which suggests a cautious initial outlook. There is potential for growth in the aerospace sector, especially in commercial original equipment and aftermarket services, but this is balanced by headwinds in the industrial automation segment where initial guidance was unexpectedly low.
Moreover, there are ongoing challenges in the personal protective equipment market, which continue to impact the company’s performance. Additionally, upcoming structural changes, like the planned separations in the automation and aerospace sectors, introduce a level of uncertainty or ‘spin limbo’ risk, which could affect the company’s focus and execution in the short term. Given these mixed signals, the Hold rating reflects a cautious stance while acknowledging potential upside in certain areas.

According to TipRanks, O’Dea is a 5-star analyst with an average return of 10.7% and a 62.45% success rate. O’Dea covers the Industrials sector, focusing on stocks such as Honeywell International, Emerson Electric Company, and Rockwell Automation.

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