After Honeywell (HON) issued a press release announcing that its board has made “significant progress” on its comprehensive portfolio evaluation launched earlier this year and continues to explore strategic alternatives, including the potential separation of its Aerospace business, BofA said the release signals an Aero breakup is “likely in the works.” Elliott also issued a press release today, saying that it “welcomes Honeywell’s announcement,” notes the analyst, who says the engagement between Honeywell and the activist “seems to be amicable.” The firm, which adds that breakups create value, but notes that “stocks tend to be relatively ‘stuck’ as the breakup takes place,” maintains a Neutral rating and $240 price target on Honeywell shares.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on HON:
- Honeywell call volume above normal and directionally bullish
- Honeywell still exploring alternatives, Capri weighs Versace sale: Morning Buzz
- Honeywell (NASDAQ:HON) Weighs Aerospace Spinoff amid Activist Pressure
- Morning Movers: Viridian and Edgewise jump following successful trials
- Elliott issues statement on ongoing Honeywell review