How Much Upside Do Analysts See for Honeywell?

Analysts’ consensus on Honeywell

In the past two months, the number of analysts covering Honeywell (HON) stock reduced from 21 analysts to 19 analysts. Among them, 79% of the analysts recommended the stock as a “buy,” 21% recommended the stock as a “hold,” and none of the analysts recommended the stock as a “sell” as of September 6, 2017.

How Much Upside Do Analysts See for Honeywell?

Honeywell’s mean target price, recommended by analysts’ consensus, stands at $144.44 over the next 12 months. Its target price implies a return potential of ~5.8% from the closing price of $136.55 as of September 6, 2017.

Many analysts stick to a “buy” or “hold”

In the first two quarters, Honeywell reported better-than-expected earnings and managed to beat analysts’ estimates. Honeywell made an upward revision to the lower end of its EPS (earnings per share) for fiscal 2017 to $7.0–$7.10—compared to the earlier guidance of $6.90–$7.10. All of these factors would have influenced analysts to recommend the stock as a “buy” or a “hold.”

Recommendations from individual brokerage firms

  • Morgan Stanley (MS) recommended a target price of $145 for Honeywell, which implies a potential return of 6.20% over the closing price of $136.55 as of September 6, 2017.
  • RBC provided Honeywell with a target price of $148, which implies a return potential of 8.40% from the closing price of $136.55 as of September 6, 2017.
  • Jefferies rated Honeywell as a “buy.” It recommended a target price of $155, which implies a return potential of 13.50% from the closing price of $136.55 as of September 6, 2017.

Investors looking to invest in Honeywell indirectly can invest in the Vanguard Industrials ETF (VIS). VIS has invested 3.60% of its portfolio in Honeywell. The fund’s other top holdings include General Electric (GE), Boeing (BA), and 3M (MMM) with weights of 7.90%, 5.0%, and 4.40%, respectively.