Financial institution of America mentioned buyers ought to think about shares of Honeywell , which has a gorgeous mixture of finish markets that can profit from broader manufacturing developments. Analyst Andrew Obin upgraded shares of Honeywell to purchase from impartial, and maintained its value goal, saying in a Monday word that he approves of the corporate’s execution and sees sturdy potential for its finish markets in aerospace and the oil and fuel trade. “HON’s finish market combine contains aerospace (33% of income) and oil & fuel (12%), together with longer-cycle non-residential development and up to date execution has been sturdy,” Obin wrote. Honeywell is anticipated to generate $35.6 billion in income in 2022, in accordance with Financial institution of America estimates. Financial institution of America maintained a $210 value goal on the corporate. It implies about 21% upside from Friday’s closing value. The aerospace and oil and fuel industries will proceed to profit at the same time as broad manufacturing demand diminishes, significantly in consumer-facing corporations, the word learn. Aerospace will get a lift from rising protection spending, whereas oil and fuel will have the ability to revenue from larger spending in power infrastructure. The analyst additionally famous that the Honeywell shares are priced at premium to its peer group as buyers shifted to high quality shares. Shares of Honeywell fell 16% this yr, in contrast with a median 31% decline in different shares in Financial institution of America’s protection of the industrials sector. “The corporate has executed effectively just lately within the risky macro setting,” Obin wrote. “It was one in all few corporations in our protection to beat-and-raise in 1Q and we view 2Q earnings as a probable optimistic catalyst.” Shares of Honeywell climbed about 1% in Monday premarket buying and selling. —CNBC’s Michael Bloom contributed to this report.
