Nomura Securities Maintains a 'Buy' on Honeywell International (HON); Attractive Despite Pension

Nomura Securities maintains a 'Buy' on Honeywell International (NYSE: HON) price target of $73.00.

Analyst, Shannon O'Callaghan, said, "A lot of people are asking why Honeywell isn’t getting a better P/E, as it currently trades at a 4% discount to the sector on our 2013 EPS estimate. Some of the pushback we get comes from the Honeywell pension accounting change implemented in late 2010, which benefits HON’s EPS vs peers. We apply HON’s pension method to our sector and adjust market caps for underfunding to get a cleaner economic pension-adjusted P/E. On this basis, HON moves from a 4% discount to the group to in line with the group. So while HON does get a benefit as expected, it is modest and we still think it has earned a higher P/E."

For an analyst ratings summary and ratings history on Honeywell International click here. For more ratings news on Honeywell International click here.

Shares of Honeywell International closed at $57.14 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Jefferies Assumes Honeywell International (HON) at Hold
• William Blair Downgrades Enovix Corporation (ENVX) to Market Perform
• Seaport Global Securities Downgrades JetBlue Airways (JBLU) to Neutral