July 26 - Honeywell International Inc on Thursday lowered its annual profit forecast, due to lower demand in its industrial automation business
ENCOURAGED BY HON'S M&A STRATEGY
** Goldman Sachs ("buy", PT: $227) says it remains constructive on longer-term outlook for HON but also says it recognizes that the near-term outperformance will depend on upside earnings revisions
** J.P. Morgan ("overweight", PT: $225) says they see no sign of HON's short-cycle business' improvement in the second half of the year despite strong orders
** Citigroup ("buy", PT: $240) sees margins facing near-term pressure but the headwinds would be temporary
** Brokerage adds "Equally importantly, HON's focus on organic growth and continued productivity actions/commercial excellence initiatives should support solid earnings growth over time"
** RBC Capital Markets ("sector perform", PT: $214) says the bull case on HON, which was assuming that the high-margin short-cycle business would rebound soon, has not happened but is encouraged by HON using the M&A lever for growth
(Reporting by Gokul Pisharody in Bengaluru)
((Gokul.Pisharody@thomsonreuters.com))
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