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Are Analysts Still Bullish on Honeywell?

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Analysts’ consensus on Honeywell

Analysts’ interest in Honeywell (HON) has been on the rise since its third-quarter earnings. Currently, 24 analysts are actively tracking Honeywell stock. 79% of these analysts have recommended the stock as a “buy,” 21% of analysts have recommended the stock as a “hold,” while none of the analysts had a “sell” recommendation for Honeywell.

The analysts’ consensus view indicates a target price of $172.30 for Honeywell, which implies a return potential of 16.8% over the closing price of November 14, 2018.

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Honeywell’s third-quarter earnings beat Wall Street estimates with reported adjusted EPS of $2.03, an increase of 16.7% over the previous year. Honeywell also successfully completed the spin-offs of Garrett Motion (GTX) and Resideo (REZI). Honeywell also completed another spin-off, which now trades as Advan Six (ASIX). As a result, Honeywell revised its fiscal 2018 adjusted EPS to be in the range of $7.95 to $8.00 as against the earlier guidance of $8.05 to $8.15. However, with organic growth and the new acquisition of Transnorm, Honeywell is poised to outperform Wall Street estimates again. As a result, many analysts appear to be bullish on the stock.

Individual analysts’ recommendations

  • J.P. Morgan (JPM) has rated Honeywell as “overweight” but has lowered its target price to $176, which implies a return potential of 19.3% over the closing price of $147.53 on November 14.
  • Oppenheimer cut Honeywell’s target price to $177 from $184, which implies a return potential of ~20.0% from its closing price on November 14.
  • Morgan Stanley (MS) cut its target price on Honeywell to $170, which implies a return potential of 15.2% over the closing price of November 14.

You can get indirect exposure to Honeywell by investing in the Invesco Dynamic Large Cap Value ETF (PWV), which invests 3.3% of its portfolio in Honeywell.

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