Mizuho Lowers Honeywell Target Price Amid Analysts’ Revisions

Honeywell International (NASDAQ: HON) saw its target price cut from $250.00 to $240.00 by Mizuho in a report released on December 11, 2023. Despite the adjustment, Mizuho maintains an “outperform” rating on the stock. This revision is part of a broader trend among equity analysts, many of whom have recently reassessed their outlooks on the diversified multinational conglomerate.

Other analysts have also revised their target prices. For instance, Goldman Sachs Group reduced its target from $245.00 to $236.00 while setting a “buy” rating on December 16. Similarly, TD Cowen adjusted its price objective from $250.00 to $240.00, maintaining a “buy” rating as well.

On November 11, HSBC lowered its target from $290.00 to $266.00, and Rothschild & Co Redburn cut its target from $240.00 to $222.00, issuing a “neutral” rating in a report dated October 27. Robert W. Baird further reduced its price objective from $250.00 to $220.00 in early October, also assigning a “neutral” rating.

Currently, nine analysts have rated Honeywell as a “buy,” while ten have given it a “hold” rating. One analyst has issued a “sell” rating. According to data from MarketBeat.com, the stock holds an average rating of “hold” with an average target price of $234.15.

Recent Earnings and Guidance

Honeywell reported its latest earnings results on December 11, 2023, revealing earnings per share (EPS) of $2.25 for the quarter and total revenue of $8.95 billion. The company posted a net margin of 15.07% and a return on equity of 38.11%. Looking ahead, Honeywell has set its fiscal year 2025 guidance at an EPS range of $10.600 to $10.700 and estimates for the fourth quarter of 2025 between $2.520 and $2.620.

Sell-side analysts predict that Honeywell will report an EPS of $10.34 for the current fiscal year, indicating a cautious optimism regarding its financial performance.

Institutional Investor Activity

Recent changes in institutional holdings reflect growing interest in Honeywell. Chung Wu Investment Group LLC acquired a new stake in the company during the second quarter, valued at approximately $26,000. Holos Integrated Wealth LLC and RMG Wealth Management LLC also made new investments in the fourth and second quarters, respectively, with the latter valued around $33,000.

Additionally, Howard Hughes Medical Institute purchased a stake valued at $33,000 during the second quarter, while Activest Wealth Management increased its holdings by an impressive 425.9%, now owning 142 shares worth approximately $33,000 after acquiring an additional 115 shares.

Currently, hedge funds and institutional investors own around 75.91% of Honeywell’s stock, indicating significant institutional confidence in the company’s long-term prospects.

Honeywell International Inc. operates as a diversified, publicly traded multinational conglomerate, focusing on various sectors including aerospace, building technologies, performance materials, and safety and productivity solutions. Its substantial portfolio includes avionics and propulsion systems, building controls, industrial automation software, and personal protective equipment, among other offerings.

As Honeywell navigates a shifting market landscape, analysts will continue to monitor its performance and the implications of these recent target price revisions.