Daiwa Securities Bullish on Honeywell, Sees Stock Upside Following Aerospace Spin-Off

Deep News07-01 03:10

Daiwa Capital Markets has expressed a positive outlook on Honeywell (HON), suggesting its stock price could rise following the spin-off of its aerospace division.

The investment firm has assigned an "Outperform" rating to the company and set a price target of $255, representing an approximate 12% upside from Monday's closing price.

Analysts at Daiwa noted in a client report that their "Outperform" rating post-spin reflects the potential for margin improvement through the elimination of redundant costs and independent profit streams. They also expressed long-term confidence in the company's ability to expand its software and services operations.

Shares of Honeywell fell over 6% on Monday upon completion of the spin-off, which created the standalone entity Honeywell Aerospace, and declined a further 1% on Tuesday.

Daiwa is among several Wall Street institutions with a favorable view of the company. Of the 28 analysts covering the stock, 16 maintain either a "Buy" or "Strong Buy" rating.

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