Gautam Khanna, an analyst from TD Cowen, maintained the Buy rating on Honeywell International. The associated price target remains the same with $260.00.
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Gautam Khanna’s rating is based on a combination of strategic evaluations and market dynamics that Honeywell International is currently undertaking. The company is assessing strategic alternatives for its PSS and Warehouse units, which do not align with the new direction of Honeywell Automation under the leadership of Mr. Kapur. Additionally, the planned spin-off of Solstice, a significant part of Honeywell’s sales and earnings, is expected to occur by late 2025, indicating a focused approach towards core business areas.
Furthermore, Honeywell’s aerospace segment is showing promising recovery signs, with a 7% year-over-year sales growth in Q2 and expectations for continued demand alignment in the second half of the year. The company is also investing in research and development within the aerospace sector, which, coupled with a robust merger and acquisition pipeline, suggests a strategic positioning for future growth. These factors collectively contribute to Khanna’s Buy rating for Honeywell International’s stock.