Deutsche downgrades Honeywell to Hold on lack of growth

Deutsche Bank downgraded Honeywell to Hold from Buy with a price target of $215, down from $227. The analyst says the single biggest driver of the stock’s underperformance has been Honeywell’s “sub-par” organic growth. It is critical to believe Honeywell can produce top-tier organic growth in order to justify share price outperformance from here, the analyst tells investors in a research note. However, the firm’s analysis “fails to prove that this is a likely outcome.” Deutsche finds it is hard to gain conviction in the company’s second half of 2024 implied revenue ramp. Even if this does materialize, there are better stocks to own in a short-cycle recovery, says the firm.