In a report released today, Andrew Obin from Bank of America Securities reiterated a Buy rating on Honeywell International (HON – Research Report), with a price target of $250.00.
Andrew Obin’s rating is based on Honeywell International’s clear strategy for accelerating organic growth and proactive portfolio management. In a recent meeting with the company’s CEO, Vimal Kapur, strategies to drive faster volume growth were outlined, which include targeting high-growth regions, expanding customer wallet share in aftermarket and services, as well as a focus on impactful new product introductions planned for beyond 2025. The company is also implementing a more rigorous approach to research and development, streamlining efforts to prioritize larger projects while digitally tracking R&D progress. Additionally, the integration of organic growth targets into general managers’ compensation points to a deepened commitment to growth, further bolstering Obin’s confidence in the company’s future performance.
Moreover, Obin notes Honeywell’s strategic approach to mergers and acquisitions, with a focus on bolt-on acquisitions that align with key strategic verticals such as aerospace, automation, and energy transition, all with an eye towards long-term accretive gross margins. The company’s active M&A strategy, coupled with a commitment to share buybacks aimed at reducing share count annually, suggests a shareholder-friendly approach to capital allocation. With these initiatives, Honeywell is positioning itself to benefit from current defense sector growth opportunities and longer-term trends in energy and sustainability. This considered approach to driving both short-term recovery and long-term value creation underpins Obin’s Buy rating and a price objective of $250.
Obin covers the Industrials sector, focusing on stocks such as 3M, Pentair, and Vertiv Holdings. According to TipRanks, Obin has an average return of 10.6% and a 62.60% success rate on recommended stocks.
In another report released today, Berenberg Bank also upgraded the stock to a Buy with a $240.00 price target.
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Honeywell International (HON) Company Description:
Founded in 1885, North Carolina-based Honeywell International, Inc. is a technology and manufacturing company. It provides industry specific solutions including aerospace and automotive products and services; control technologies for buildings and homes; and performance materials. It operates through four segments, including Aerospace; Honeywell Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions.
Read More on HON:
- HONEYWELL ANNOUNCES QUARTERLY DIVIDEND
- Honeywell price target lowered to $221 from $238 at JPMorgan
- Honeywell price target raised to $230 from $225 at Barclays
- Honeywell to invest $84M in expansion of Kansas aerospace manufacturing facility
- Jefferies aerospace/defense analysts to hold analyst/industry conference call
