Analyst recommendations for Honeywell
As of February 21, 2017, 22 brokerage firms were tracking the Honeywell (HON) stock actively. 82% of these analysts recommended the stock as a “buy,” 18% recommended the stock as a “hold,” and none of the analysts recommended the stock as a “sell.”
The analysts’ consensus indicates the 12-month target price for HON to be at $127.60, which implies a return potential of 2.3% from its closing price of $124.71 on February 21, 2017.
Why are analysts recommending a “buy” for Honeywell?
With Honeywell’s 4Q16 earnings meeting analysts’ expectations and with HON reaffirming the 2017 earnings per share guidance of $6.85–$7.10, the majority of analysts are recommending a “buy” for HON.
Recommendations and targets from some well-known brokerage firms
Below are some of the recommended target prices from well-known brokerage firms for Honeywell:
- On January 30, 2017, Credit Suisse (CS) rated Honeywell as “neutral” with a target price of $115.00, which implies a 12-month potential return of -7.8% over the February 21 closing price of $124.71.
- On January 30, 2017, Morgan Stanley (MS) announced Honeywell’s target price as $132, which implies a 12-month potential return of 5.8% over the February 21 closing price of $124.70.
- On January 30, 2017, Goldman Sachs (GS) rated Honeywell as a “buy” with a target price of $133, which implies a 12-month potential return of 6.6% over the February 21 closing price of $124.70.
Notably, investors can indirectly hold Honeywell by investing in the Industrial Select Sector SPDR Fund (XLI), which has invested 4.6% of its portfolio in Honeywell as of February 21, 2017.
In the next part, we’ll look at the latest Honeywell valuations.