Street View: Stranded cost cuts, demand momentum power Honeywell's bull case
HON•Broker views point to cost cuts and order momentum
- Daiwa Capital Markets (
outperform, PT: $277) says HON is set to benefit from an industrial demand pick-up and cutting stranded costs after the spin-off. - Sees margin gains from favorable pricing and faster cost-management at the Industrial Automation segment.
- Evercore ISI (
outperform, PT: $275) says standalone cost-elimination is running ahead of plan and growth in short-cycle orders supports the outlook for the next 12 months. - RBC Capital Markets (
outperform, PT: $298) says stranded-cost elimination is an "important near-term earnings lever". - Citigroup (
buy, PT: $279) says a wide pickup in customer demand and improving growth visibility across much of the company's portfolio supports the raised forecast.
Honeywell raises FY profit forecast on resilient demand
Honeywell Technologies HON.O raised its FY profit forecast on Thursday, helped by resilient demand for its industrial and building automation products, as the company reported its first earnings as a standalone business after a three-way split.
