Honeywell price target lowered to $250 from $265 at BofA

BofA lowered the firm’s price target on Honeywell (HON) to $250 from $265 and keeps a Buy rating on the shares after Honeywell announced plans to acquire Carrier’s (CARR) Global Access Solutions business for $4.95B. The deal price reflects about a 17 times multiple on the existing Security business, notes the firm, which in previous commentary had assumed a 16.5 times multiple to value Carrier’s security business, though the firm also noted that Honeywell indicated a 13 times multiple when including tax benefits and cost synergies. The firm views more pro-active M&A as a positive, but lowers its price target on Honeywell shares to reflect a multiple derating.