After Honeywell (HON) issued a press release announcing that its board has made “significant progress” on its comprehensive portfolio evaluation launched earlier this year and continues to explore strategic alternatives, including the potential separation of its Aerospace business, BofA said the release signals an Aero breakup is “likely in the works.” Elliott also issued a press release today, saying that it “welcomes Honeywell’s announcement,” notes the analyst, who says the engagement between Honeywell and the activist “seems to be amicable.” The firm, which adds that breakups create value, but notes that “stocks tend to be relatively ‘stuck’ as the breakup takes place,” maintains a Neutral rating and $240 price target on Honeywell shares.
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Read More on HON:
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- Honeywell (NASDAQ:HON) Weighs Aerospace Spinoff amid Activist Pressure
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- Elliott issues statement on ongoing Honeywell review
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
