J.P. Morgan Reiterates Overweight Rating on Honeywell International
In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on Honeywell International (NYSE: HON).
J.P. Morgan noted, “Initial 2013 guidance is an in-line event despite lower organic growth, reinforcing our view of best-in-class ‘EPS leverage' in a tough economy on the back of margin opportunity and disciplined M&A. With appropriately conservative organic growth, the recent track record would suggest the high end is very much achievable, with some hedge perhaps around deal dilution/FX. The IN deal is right down the middle and portends more aggressive activity going forward, key to potential earnings upside in '14 (guidance still calls for ~$5.80 in EPS at the m/p vs. Street at $5.49) and beyond. In the end, this looks like a ‘check the box' event with no change to our OW thesis.”
Honeywell International closed on Friday at $61.97.
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