Honeywell downgraded to Neutral rating at Daiwa on rich valuation
Spencer Platt

Honeywell International (NASDAQ:HON) on Monday was downgraded to a Neutral investment rating from Outperform by analysts at Daiwa on its valuation and possibility of missing earnings estimates. The stock declined less than 1% as of 12:16 p.m. ET.
"We find the risk/reward less favorable,
given potential downside to 2023 consensus estimates and premium valuations," according to the report. 
The bank lowered its price target to $194 a share from $206, based on a multiple of 22 times its 2023 EPS estimate of $8.80 for Honeywell.
On Thursday, Honeywell reported adjusted earnings for Q3 of $2.25 a share, beating the average Wall Street estimate by $0.10. The company raised the low end of guidance for this year's adjusted EPS to a range of $8.70 to $8.80 from $8.55 to $8.80 previously, compared with the consensus estimate of $8.64.
Honeywell this year had declined less than 1% through Oct. 28, compared with a 19% drop for the S&P 500 index (SP500). 
Seeking Alpha contributor Valuentum has a Buy rating on Honeywell (HON) on its longer-term performance. Columnist Stephen Simpson rates Honeywell (HON) as a Hold on its current fair value.