Resideo upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley upgraded Resideo (REZI) to Overweight from Equal Weight with a price target of $35, up from $24, implying 27% upside from current levels. Resideo is executing more consistently, with the Q2 results exceeding the high end of guidance, the analyst tells investors in a research note. The firm also believes the company has removed a “structural impediment” for investors and catalyzed a clear path to $3 per share of earnings power with the cancellation of the Honeywell indemnification agreement. Morgan Stanley now sees a clearer path to unlocking sum-of-the-parts value.