Citi views Honeywell’s (HON) decision to continue to explore strategic portfolio actions as inline with CEO Vimal Kapur’s ongoing portfolio simplification and realignment initiatives and likely accelerating the company’s value creation over time. The firm thinks “pure-play” aerospace and automation focused companies could garner a better valuation multiple over time as they establish themselves. While yesterday’s announcement doesn’t necessarily indicate Honeywell will separate its businesses, the news suggests a faster timeline for a potential break-up than anticipated, the analyst tells investors in a research note. Citi continues to think a more streamlined portfolio and focused management could unlock incremental value over time.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on HON:
- Honeywell release signals Aero breakup ‘likely in the works,’ says BofA
- Honeywell call volume above normal and directionally bullish
- Honeywell still exploring alternatives, Capri weighs Versace sale: Morning Buzz
- Honeywell (NASDAQ:HON) Weighs Aerospace Spinoff amid Activist Pressure
- Morning Movers: Viridian and Edgewise jump following successful trials