Oppenheimer Raises Price Target Following Honeywell's (HON) 2016 Outlook
Oppenheimer reiterated an Outperform rating on Honeywell International (NYSE: HON), and raised the price target to $120.00 (from $117.00), following the company's 2016 outlook. Guidance for 2016 EPS was $6.45-6.70 compared to consensus estimates of $6.55, and reflects 6-10% expansion.
Analyst Christopher Glynn commented, "Guidance for 2016 EPS of $6.45-6.70 (excluding any mark-to-market pension adjustment) compared to consensus of $6.55 and reflects 6-10% expansion. Organic revenue growth guidance of 1-2% yields to 4-6% reported, including 5-6% from M&A (five deals announced since July totaling $5.5B deployed capital once closed) and ~2% FX headwinds (assumes $1.00 euro/USD, with $0.15 EPS impact). Planned restructuring spend of over $130M in 2015 is expected to result in incremental benefits of $150-175M in 2016, with contingency capacity should sales trend to the lower end of 2016 guide to protect earnings commitment. HON guided for segment OM expansion of 10-50 bps, including 80-110 bps improvement excluding acquisitions, with especially robust organic OM improvement at Aero and ACS."
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Shares of Honeywell International closed at $104.08 yesterday.