Oppenheimer Upgrades Resideo Technologies (REZI) to Outperform on Honeywell deal

Oppenheimer analyst Ian Zaffino upgraded Resideo Technologies (NYSE: REZI) from Perform to Outperform with a price target of $35.00.

The analyst commented: "In a deal we view as highly positive, REZI and Honeywell agreed to resolve a major burden that has been with REZI since its spin-off from HON in 2018. REZI will no longer pay HON $140M/year for the next 18 years. Instead, REZI will make a lump-sum payment of $1.59B in 3Q25 to get out of the obligation (~6% IRR). Not only will the agreement eliminate the $140M drag on annual EBITDA, it will also allow REZI to spin off its very high-quality distribution business, ADI, by 2H26. We now feel comfortable with a higher SOTP valuation, as the impending spin makes this analysis no longer theoretical. As a result, we upgrade shares of REZI to Outperform, from Perform, and establish a PT of $35."

For an analyst ratings summary and ratings history on Resideo Technologies click here. For more ratings news on Resideo Technologies click here.

Shares of Resideo Technologies closed at $24.55 yesterday.

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