Citi Downgrades Honeywell (HON) to Hold; Lower Outlook On Tough Macro Conditions

April 27, 2009 9:45 AM EDT

Citi downgrades Honeywell International Inc (NYSE: HON) from Buy to Hold. Price target lowered from $41 to $34.

Citi analyst says, "Assuming flat asset returns and flat discount rate versus year end HON could have a 50c pension headwind in 2010. Its current discount rate index is up 100bps versus year end, which would imply only a 30c headwind if it holds. Our 2010 estimate of $2.55 assumes a full 50c headwind."

"HON shares are cheap, but muted EPS leverage in 2010 will likely restrain relative upside in the stock. We see some potential operational upside to our 2010 estimates and pension inputs could swing either way, but HON’s growth looks increasingly likely to trail our group."

Honeywell International Inc. (Honeywell) is a diversified technology and manufacturing company, serving customers globally with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials.

To see more analyst ratings on HON Click Here.

Related Categories

Downgrades

Stocks Mentioned

Related Entities

• Citi

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?