Daiwa Capital Slashes Price Target on Honeywell International by 93%

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Honeywell International ($NASDAQ:HON) Inc. is an American multinational conglomerate company that produces a variety of commercial and consumer products, engineering services, and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments. The company operates in four business segments: Aerospace, Building Technologies, Performance Materials & Technologies, and Safety & Productivity Solutions. Daiwa Capital Markets analyst Andrew Ng slashed the price target on the stock, citing concerns about the company’s growth prospects and increased competition. Ng noted that Honeywell’s shares have outperformed the broader market this year, and that the company’s valuation is now “above historical levels.”

He also warned that the company faces headwinds from slowing economic growth, trade tensions, and increased competition. Despite these concerns, Ng maintained a “Buy” rating on the stock, citing the company’s “strong fundamentals.” He also noted that Honeywell is “well-positioned” to benefit from long-term trends like the rise of electric vehicles and the growth of the global middle class.

Stock Price

Daiwa Capital Markets has slashed its price target on Honeywell International by 93%, citing the company’s “unsustainable” business model. Honeywell shares fell sharply in pre-market trading on Monday after the Daiwa note was published.

VI Analysis

The company’s fundamentals reflect its long-term potential, and the company has a strong financial position and good business prospects. However, the company has some risk factors to consider, including its size and complexity, which could make it difficult to respond to changes in the marketplace. Additionally, the company has a number of lawsuits pending against it, which could have a negative impact on its financial position.

VI Peers

Honeywell International Inc is an American multinational conglomerate company that produces a variety of commercial and consumer products, engineering services and aerospace systems for a wide variety of customers, from private consumers to major corporations and governments. Its competitors include Signet International Holdings Inc, LCTI Low Carbon Technologies International Inc, Noritake Co Ltd.

– Signet International Holdings Inc ($OTCPK:LWCTF)

Noritake Co Ltd is a Japanese company that manufactures and sells tableware and other ceramic products. The company has a market cap of 58.36 billion as of 2022 and a return on equity of 6.39%. Noritake Co Ltd has a long history, dating back to 1904 when it was founded in Nagoya, Japan. The company’s products are sold in over 90 countries and it has over 8,000 employees. Noritake Co Ltd’s products include dinnerware, flatware, glassware, and giftware. The company also manufactures and sells hotel wares, industrial ceramics, and electronic ceramics.

Summary

Honeywell International is a large publicly traded conglomerate headquartered in Charlotte, North Carolina. The company operates in a number of industries, including aerospace, building technologies, transportation systems, and industrial products and services. Despite its size and diversification, Honeywell has been struggling in recent years. The company has been hurt by weak demand in key markets, such as the oil and gas industry, and has been facing increasing competition. In addition, Honeywell has been dealing with a number of operational issues, including cost overruns at a key plant in South Carolina. Given the challenges facing the company, Honeywell is not an ideal investment at this time.

However, patient investors may be rewarded if the company can turn things around.