UBS analyst Damian Karas upgrades $Honeywell (HON.US)$ to a buy rating, and adjusts the target price from $215 to $298.
According to TipRanks data, the analyst has a success rate of 63.8% and a total average return of 11.2% 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 by an investor for a two-way split into separate aerospace and automation-focused entities is considered a rational approach to tackle the company's persistent underperformance. The recent lackluster performance of the company's shares is, in part, due to the market's current preference for cyclically-leveraged entities over firms with high-quality earnings, according to an analyst.
The firm is buoyed by the correspondence to Honeywell's Board and the possibilities for more significant changes within the portfolio. However, it is anticipated that it will take time for the Board to consider and for any resulting actions to be implemented, which suggests that it could be until 2026 before any potential divestitures 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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