Honeywell cut at Credit Suisse, which now favors GE in aerospace recovery
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Honeywell (HON
+0.9%) edges higher despite getting a downgrade from Credit Suisse to Neutral from Outperform with a $226 price target, trimmed from $243, even after the stock ended 2022 roughly where it began the year.
Credit Suisse analyst Jon Walsh says Honeywell is a "high quality industrial software company with leading businesses across each segment," Credit Suisse analyst Jon Walsh writes, but he sees more upside potential in shares of General Electric
(GE
+2.7%) among major names with leverage to a cyclical aerospace recovery.
For Honeywell, Walsh expects only modest margin expansion in 2022 in the aerospace business given the company's "already strong execution and negative mix potential."
Citing concerns about supply chain problems affecting results in the first half of this year, Bank of America recently lowered Honeywell to Hold from Buy.