Honeywell downgraded to Neutral from Outperform at Baird

Baird downgraded Honeywell (HON) to Neutral from Outperform with a price target of $217, down from $223. The firm says ongoing weakness in Honeywell’s short-cycle businesses that will linger through year-end, which limits visibility and creates some growth uncertainty in 2025. While the the company’s long-cycle performance and recent acquisition actions are helping offset this outlook, the setup for 2025 “has lots of moving pieces” along with short-cycle sluggishness, which provides less confidence in Honeywell’s underlining earnings power, the analyst tells investors in a research note. As such, Baird sees the stock’s risk/reward as more balanced at current levels.