In a report released yesterday, Andrew Obin from Bank of America Securities reiterated a Buy rating on Honeywell International, with a price target of $265.00.
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Andrew Obin has given his Buy rating due to a combination of factors surrounding Honeywell International’s strategic adjustments and market positioning. The upcoming spin-off of the Solstice business is a significant factor, as it involves updating estimates and adjusting the sum-of-the-parts (SOTP) valuation to reflect this change. The spin-off is expected to result in a temporary dilution in earnings per share, but Honeywell plans to offset this with share repurchases, which should positively impact future earnings.
Additionally, the third quarter performance appears to be on track, with orders aligning with expectations despite some initial market concerns. Honeywell’s valuation is attractive, trading at a discount compared to its peers, which makes it a compelling investment opportunity. The potential for increased investor interest post-spin-off and the overall strategic positioning of Honeywell contribute to the Buy rating, as the company is seen as undervalued in the current market environment.
According to TipRanks, Obin is a 5-star analyst with an average return of 15.5% and a 64.85% success rate. Obin covers the Industrials sector, focusing on stocks such as Emerson Electric Company, Eaton, and Honeywell International.
In another report released on October 6, Barclays also maintained a Buy rating on the stock with a $265.00 price target.