Strategic Acquisition Boosts Honeywell’s Growth Prospects: Buy Rating Affirmed

Andrew Obin, an analyst from Bank of America Securities, maintained the Buy rating on Honeywell International (HON – Research Report). The associated price target remains the same with $250.00.

Andrew Obin has given his Buy rating due to a combination of factors, primarily focusing on Honeywell’s strategic acquisition of Johnson Matthey’s catalyst business. This acquisition is expected to enhance Honeywell’s UOP catalyst portfolio, which already holds a leading position in the market for process industries. The deal is anticipated to bring about sales synergies and technological complements, making it a strategic fit for Honeywell’s existing operations.
Moreover, the transaction is valued at a favorable multiple, considering the tax benefits and run-rate synergies, which positions Honeywell well for future growth. The UOP business is recognized for its high quality, strong market share, and recurring revenue base, and is expected to trade at a premium due to its superior margins. The acquisition aligns with Honeywell’s strategy to expand its process portfolio, and the company’s robust position in the market supports the Buy rating with a price objective of $250.

In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $243.00 price target.