RBC Capital analyst Deane Dray maintains $Honeywell (HON.US)$ with a hold rating, and adjusts the target price from $214 to $253.
According to TipRanks data, the analyst has a success rate of 65.1% and a total average return of 14.5% 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 Honeywell's free cash flow-based sum-of-the-parts valuation could rise by 2025, with a potential further increase by the end of 2026.
The suggestion for a bifurcation into an Aerospace-focused RemainCo and an automation-dedicated SpinCo is seen as a logical step to confront the persisting underachievement of the company. Despite this, the recent decline in share performance is partially explained by the market's preference for cyclically-leveraged entities over firms with high-quality earnings narratives.
The firm is encouraged by the recent communication to Honeywell's Board and the potential for significant portfolio adjustments. However, it is likely that the time needed for the Board to deliberate and for any resulting actions to be implemented would mean a timeline extending to 2026 before any potential divestitures could 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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