Jefferies Maintains “Buy” Rating on Honeywell; Shares at a Discount (HON)


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Diversified technology and manufacturing company Honeywell International Inc. ( HON ) on Tuesday saw its "Buy" rating reiterated by analysts at Jefferies & Co.

The firm also backed its $72 price target on HON, which suggests a massive 63% upside to the stock's Monday closing price of $44.14.

A Jefferies analyst commented, "We continue to rate Honeywell International shares BUY. Our estimates remain unchanged at $4.00, $4.40 and $4.85 for 2011, 2012, and 2013, respectively. With a forward P/E multiple of about 10x and a dividend yield of about 3%, the company is selling at a 20% discount to the S&P 500 and offers a premium dividend yield with a superior growth rate."

Honeywell shares were unchanged in premarket trading Tuesday.

The Bottom Line
Shares of Honeywell ( HON ) have a 3.01% dividend yield, based on last night's closing stock price of $44.14. The stock has technical support in the $40-$42 price area. If the shares can firm up, we see overhead resistance around the $47-$50 price levels.

Honeywell International Inc. ( HON ) is not recommended at this time, holding a 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 Nasdaq, Inc.

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