Analyst Andrew Obin from Bank of America Securities maintained a Hold rating on Honeywell International (HON – Research Report) and keeping the price target at $240.00.
Andrew Obin’s rating is based on Honeywell International’s strategic acquisition of Sundyne, which is expected to enhance Honeywell’s position in the UOP and Process Solutions business. The acquisition aligns with Honeywell’s strengths in process automation and is anticipated to be earnings neutral in 2025 and accretive by 2026. Despite the potential for sales synergies and organic growth, the acquisition does not immediately transform Honeywell’s financial outlook, leading to a Hold rating.
Furthermore, the integration of Sundyne into Honeywell’s UOP business and Energy & Sustainability Solutions segment is expected to bolster Honeywell’s offerings in the energy transition markets. While the acquisition supports Honeywell’s long-term strategy, the current valuation and expected return on invested capital suggest a balanced risk-reward profile, justifying the Hold recommendation.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HON in relation to earlier this year.