Jefferies Reports Puts And Takes On Honeywell

According to Jefferies, Honeywell Int'l

is seeing some puts and takes. Jefferies said that the acquisition of the Phenol plant from Sunoco, announced in Mid-May is expected to add about $250 million to 2011 results and improve the supply chain for making Caprolactam. “Our $72 PT values HON at an 18% premium to the market multiple of about 13.1x on 2012 EPS of $4.40, based on the potential for above avg growth and strong market positions. Risks include an aborted economic recovery or a spike in raw material or other costs.” Honeywell Int'l closed yesterday at $56.07.