Trump announces 100% chip tariff as Apple ups U.S. investment
Investing.com - Jefferies maintained its Hold rating and $240.00 price target on Honeywell International (NASDAQ:HON), aligning with the broader analyst consensus of Hold, despite the company raising its 2025 revenue guidance. The industrial conglomerate, currently valued at $139 billion, trades within analysts’ price target range of $210-$290.
Honeywell increased its organic revenue guidance by 2 percentage points for 2025, led by improvements in its Building Automation (BA) segment, now expected to grow at mid-to-high single digits versus the previous mid-single digit forecast. The company has demonstrated solid growth momentum, with revenue increasing 7.11% over the last twelve months.
The company’s Industrial Automation (IA) segment outlook also improved to a low-to-mid-single digit decline from a mid-single digit decline previously, based on year-to-date short cycle improvement with BA up 8% in the first half and IA down only 2%.
Jefferies adjusted its estimates for IA to a 2% organic decline versus its previous 4% decline forecast, while raising Building Automation growth expectations to 9% from 5% previously on continued U.S. strength.
The Aerospace segment outlook remains unchanged at 10% organic growth, despite lower Commercial Original Equipment expectations (now +16% versus +23% previously) being offset by higher Defense forecasts (now +9% versus +6% previously).
In other recent news, Honeywell International has adjusted its 2025 organic revenue guidance, increasing it by 2 percentage points. This adjustment is primarily driven by improvements in Building Automation and Industrial Automation sectors. Meanwhile, Resideo Technologies (NYSE:REZI) has announced a significant agreement with Honeywell to eliminate future payment obligations. Resideo will make a one-time payment of $1.59 billion to Honeywell in the third quarter of 2025, which will end annual payments of up to $140 million that were set to continue through 2043. Additionally, Resideo plans to separate its ADI Global Distribution business through a tax-free spin-off, resulting in two independent public companies by the second half of 2026. On the analyst front, Jefferies has maintained a Hold rating on Honeywell with a price target of $240, expressing caution about short-cycle momentum. JPMorgan, on the other hand, has raised Honeywell’s price target to $222, citing solid quarterly results and a conservative outlook for the latter half of the year. These developments highlight significant strategic and financial adjustments for both Honeywell and Resideo.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.