Berenberg upgraded Honeywell to Buy from Hold with a price target of $240, up from $195. In the context of the stock’s current valuation, the analyst sees Honeywell’s growth algorithm as attractive. Honeywell’s profits come from its aerospace business, which is set to grow strongly in the coming years alongside aerospace peers as production rates at aerospace manufacturers grind higher, which for Honeywell is further supported by a positively aligned defense business and huge installed base, the analyst tells investors in a research note. The firm believes the compounding revenue impact and “powerful compounding effect of earnings is more likely than not to see a return of the enthusiasm into the shares on more appropriately based estimates.”
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