Honeywell International (HON) has disclosed a new risk, in the Corporate Activity and Growth category.
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Honeywell International faces significant risks tied to its plan to spin off its Advanced Materials business into an independent, publicly traded entity. The completion of this transaction hinges on meeting several critical conditions, such as regulatory approvals and a tax-free status for shareholders, which are susceptible to external market conditions beyond the company’s control. Delays or unfavorable terms in the spin-off process could lead to substantial tax liabilities and financial challenges, impacting Honeywell’s business operations and stock value. Furthermore, even if the spin-off is completed, there is no assurance of its success, potentially disrupting management focus and harming relationships with key stakeholders.
Overall, Wall Street has a Moderate Buy consensus rating on HON stock based on 5 Buys and 8 Holds.
To learn more about Honeywell International’s risk factors, click here.