UBS analyst Amit Mehrotra maintained a Buy rating on Honeywell International today and set a price target of $268.00.
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Amit Mehrotra has given his Buy rating due to a combination of factors, primarily focusing on Honeywell International’s strategic transformation and potential for growth. The upcoming spin-off of its Advanced Materials business, Solstice, marks the beginning of a significant shift towards becoming a pure play building and industrial automation company. This transformation is expected to drive revenue growth and margin expansion, particularly in the Industrial Automation segment, which could lead to a re-rating of the company’s valuation.
Moreover, Honeywell’s complex conglomerate model has historically contributed to its underperformance compared to broader industrial equities. The recent and planned divestitures aim to simplify the company’s structure, potentially unlocking value and reducing the valuation discount relative to its peers. The focus on the automation portfolio and the reduction in complexity are anticipated to serve as positive catalysts for Honeywell’s shares, supporting the Buy rating.
In another report released on September 4, Citi also maintained a Buy rating on the stock with a $265.00 price target.
Based on the recent corporate insider activity of 59 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.