Honeywell raised at UBS as play on air travel recovery, automation
Spencer Platt/Getty Images News


Honeywell (HON
+2.3%) moves higher as UBS upgrades shares to Buy from Neutral with a $237 price target, raised a bit from $229, despite the stock's premium valuation, as the firm sees growth into 2022-23 surprising to the upside.

As reported by Barron's, aerospace accounts for nearly a third of Honeywell's sales, and UBS analyst Markus Mittermaier believes global air travel will recover after the pandemic, driving an improving end-market outlook for the company.
Honeywell's automation and energy segments account for roughly half of sales, so the stock also will benefit from "a capital spending inflection [in] its Process Automation and Oil and Gas exposures."
"With the stock having been a laggard in â21, underperforming [peers] the risk/reward at current levels is attractive given the expected inflection," Mittermaier writes.
Honeywell has suffered two recent downgrades, by BofA on concerns about supply chain challenges on H1 results, and by Credit Suisse, which prefers GE in a cyclical aerospace recovery.