Are Analysts Turning Bullish on Honeywell?
Will Honeywell Be Flying High with Its Upcoming 1Q16 Results?
Which company beat earnings the most?
Companies operating within Honeywell’s (HON) peer group that tend to be conservative in their earnings per share forecasts include United Technologies (UTC) and General Electric (GE). In the last eight quarters, Honeywell (HON) managed to beat earnings estimates seven times and revenue estimates five times.
It gets even better with United Technologies (UTX), which scored an earnings beat every time and a top-line beat seven times in the last eight quarters. General Electric (GE) came in last with six earnings beats and four revenue estimate beats in the last eight quarters. GE can perhaps be excused given the portfolio changes it has undertaken to focus on its core growth aerospace (XAR) and industrial (XLI) businesses.
Analyst recommendations
In the beginning of 1Q16, in January 2016, 17 of the 23 analysts covering Honeywell issued a “buy” rating for the stock. The remaining six analysts had a “hold” rating. The average target price for the stock was $115.84 after its last closing price of $102.98 on December 31, 2015. Fast forward to the end of the quarter, and the average target price had increased to $118.89, with 18 “buy” recommendations and four “hold” ratings. There was one less analyst for this rating.
Among major investment banks, Goldman Sachs (GS) reiterated its “buy” rating and revised the target price from $119 to $126. Barclays revised its $104 target price to $107 while keeping its “hold” rating intact. The analyst at Deutsche Bank upgraded Honeywell’s target price from $105 to $120. The research piece written by the analyst called the previous forecast conservative and stated that he preferred Honeywell over General Electric.
Next, let’s take a detailed look at Honeywell Aerospace.
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