Analyst: United Technologies, Honeywell Remain Leaders In Competitive Aerospace Market

Both United Technologies Corp. UTX and Honeywell International Inc. HON will continue to benefit from global construction and aerospace sector growth, according to Tigress Financial Partners’ Ivan Feinseth.

The Analyst

Feinseth recommended the purchase of UTX and Honeywell in a Friday note.

The Thesis

United Technologies CEO Greg Hayes announced the possibility of splitting UTX into three separate operating units: aerospace, climate control and elevators, with great value potential coming from the aerospace division, Feinseth said in a Friday note.

UTX’s aerospace division, UTC Aerospace, continues to benefit from a strong market, including helicopter demand and aircraft engine upgrade cycles, the analyst said. 

In addition to a growing market, UTC’s recent $30-billion acquisition of Rockwell Collins is expected to further enhance the company’s positioning in the aerospace sector while the company remains competitive in a diversified range of sectors at the same time. 

Honeywell, which produces a wide range of aerospace crafts as well as construction supplies and appliances, also stands to benefit from strong global construction and aerospace markets, Feinseth said. 

Price Action

At the time of publication, shares of United Technologies were trading down 0.81 percent at $132.79, while shares of Honeywell traded up 0.98 percent at $154.87. 

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