Honeywell extends services to Sasol
On July 2, Honeywell (HON) announced that Sasol South Africa Secunda Synfuels Operations will use the company’s connected plant to monitor the operating reliability of two of Honeywell’s already installed UOP CCR Platforming units at a refinery in Secunda, South Africa.
The system helps the staff to recognize issues and resolve processing issues that could hamper production. HON didn’t disclose the financial aspects of the deal. HON’s UOP has shown significant growth, and new business wins like this indicate the growth trend could continue.
Zak Alzein, vice president of Honeywell’s connected plant, said, “Process Reliability Advisor is unique in the industry because it analyzes site-specific process data using Honeywell UOP’s proprietary process knowledge and deep troubleshooting experience. This enables the service to recommend operational adjustments more quickly and accurately than has ever been possible, so plants can run at the very top of their capabilities.”
HON stock update
HON stock rose ~1.2% and closed at $145.72 for the week ended July 6. Despite gains, HON traded 1.6% below its 100-day moving average price of $148.17, indicating weakness in the stock. HON outperformed the PowerShares Aerospace and Defense ETF (PPA), which gained 1.0% for the week. The fund has 6.9% of its portfolio invested in Honeywell.
Year-to-date, HON stock has fallen 5.0%. However, analysts are bullish on the stock and have recommended a target price of $172, which implies a 16.7% return potential based on its July 7 closing price.
Peers United Technologies (UTX) and 3M (MMM) have fallen 2.2% and 16.1%, respectively, while Boeing (BA) has risen 12.7%. HON’s 14-day RSI (relative strength index) score of 45 indicates that the stock is neither overbought nor oversold.