UPDATE: Citigroup Reiterates on Honeywell International After Conservative Initial 2014 Guidance

In a report published Wednesday, Citigroup analyst Deane M. Dray reiterated a Buy rating on

, and raised the price target from $97.00 to $99.00. In the report, Citigroup noted, “Buy-rated Honeywell stuck with its under-promise, over-deliver playbook setting what we see as a conservative initial 2014 outlook. The high-end of $5.35-$5.55 guidance brackets $5.54 consensus, but we note that management expectations for 3%-4% organic revenue growth does not reflect any improvement in the macro environment despite recent upticks in leading indicators. There also appears to be some unofficial contingency in currency and tax expectations. We remain enthusiastic about the underlying upside in Honeywell as it continues to execute ‘seed planting' in new markets and benefits from its late-cycle exposure in commercial aero and non-residential construction (combined 50% of sales). The next big catalyst should be the March investor meeting where the company will set its new five-year margin targets. We would not be surprised to see another 300 bps target set. We are increasing our 2014 EPS estimate by 10c to $5.55, our price target by $2 to $99.” Honeywell International closed on Tuesday at $86.48.