Movement Alert|Honeywell Aerospace Inc Rises 3.05% in Regular Trading, Morgan Stanley Cites Attractive Fundamentals Supporting Oversold Rebound

Market Focus08-08

On August 8, Honeywell Aerospace Inc rose 3.05% in regular trading, trading at 161.49 USD/share, with turnover of $657 million. The stock had previously plunged over 22% in two sessions after the company sharply cut its full-year guidance, making this rise a technical rebound from deeply oversold levels.

On the news front, Morgan Stanley issued a research note stating that despite execution challenges, Honeywell Aerospace's fundamental business remains \"attractive\" with upside potential if the company can resolve its supply chain bottlenecks. The company missed Q2 consensus in its first standalone results post-spinoff, cutting organic revenue growth guidance from 7%-9% to 4%-5%, and adjusted EPS guidance to $7.60-$7.90, well below the $8.86 analyst consensus. Management attributed the shortfall to sustained mechanical supply constraints limiting its ability to convert strong aftermarket demand into revenue. The company stated it is taking steps including boosting parts availability and working more closely with suppliers to reduce operational bottlenecks.

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