Wells Fargo analyst Joe O'Dea maintains $Honeywell (HON.US)$ with a hold rating, and adjusts the target price from $215 to $254.
According to TipRanks data, the analyst has a success rate of 63.3% and a total average return of 10.9% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Honeywell (HON.US)$'s main analysts recently are as follows:
The firm anticipates that, based on free cash flow and a sum-of-the-parts analysis, there is potential for significant value appreciation by 2025. Additionally, it is noted that there could be even greater upside by the end of 2026.
The suggestion for Honeywell to separate into an Aerospace-focused RemainCo and an automation-centric SpinCo is seen as a reasonable strategy to mitigate the company's prolonged underperformance. This perspective acknowledges that the recent lag in Honeywell's share performance is partially due to the market's current preference for cyclically-leveraged stocks over companies with high-quality earnings.
The firm is inspired by the potential for significant portfolio adjustments following a letter to the Board of Honeywell. Nonetheless, the timespan required for the Board to consider and any ensuing actions suggest that it might not be until 2026 before any potential spin-offs occur.
Note:
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Success rate is the number of the analyst's successful ratings, divided by his/her total number of ratings over the past year. A successful rating is one based on if TipRanks' virtual portfolio earned a positive return from the stock. Total average return is the average rate of return that the TipRanks' virtual portfolio has earned over the past year. These portfolios are established based on the analyst's preliminary rating and are adjusted according to the changes in the rating.
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