Morgan Stanley Boosts Price Target for Honeywell (HON)


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Industrial manufacturer Honeywell International Inc. ( HON ) on Monday caught some continued bullish support from analysts at Morgan Stanley.

The firm reiterated its "Overweight" rating on HON and lifted its price target from $68 to $71. That new target suggests a 29% upside to the stock's Friday closing price of $54.89.

A Morgan Stanley analyst commented, "We see organic growth decelerate to 4% from 6% in 1Q12. Assuming 2ppts FX headwind ($1.25 Euro), we move to the low-end of 4-6% revenue growth guidance. Our model calls for a Q/Q slowdown in all segments (Aero A/M, UOP comps, European auto prodn.) ex-ACS. While mgmt noted sequential improvement in ACS short-cycle products towards end of March, we conservatively model Products at +2% (vs. +3% in 1Q12), offset by modestly better Solutions (+3%)."

Honeywell shares fell 45 cents, or -0.8%, in morning trading Monday.

The Bottom Line
Shares of Honeywell ( HON ) have a 2.71% dividend yield, based on Friday's closing stock price of $54.89.The stock has technical support in the $49-$50 price area. If the shares can firm up, we see overhead resistance around the $56-$58 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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