Honeywell Still a “Buy” at Jefferies; New Turbocharger Sales to Caterpillar Could Prove Lucrative (HON, CAT)

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Diversified industrial manufacturer Honeywell International Inc. ( HON ) on Thursday received some continued bullish commentary from analysts at Jefferies & Co.

The firm reiterated its "Buy" rating on HON as well as its $72 price target, suggesting a nearly 26% upside to the stock's Wednesday closing price of $57.37.

A Jefferies analyst commented, "Management of Honeywell's Transportation Systems unit along with Caterpillar ( CAT ) jointly hosted investors at CAT's Tinaja Hills Facility for a briefing and demonstration of off-highway equipment to gain a better understanding of HON's Turbocharger Capabilities. We estimate that HON generates about $250 million in revenues from the sale of Turbochargers to Caterpillar."


Honeywell shares rose $1.02, or +1.8%, in premarket trading Thursday.

The Bottom Line
Shares of Honeywell ( HON ) have a 2.60% dividend yield, based on last night's closing stock price of $57.37. The stock has technical support in the $53-$55 price area. If the stock can firm up, we see overhead resistance around the all-time high levels of $60-$63 a share.

Honeywell International Inc. ( HON ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CAT , HON

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