BUZZ-Analysts welcome Honeywell's potential spinoff of aerospace business

Reuters12-17 18:20
BUZZ-Analysts welcome Honeywell's potential spinoff of aerospace business

** Shares of industrial giant Honeywell International HON.O up 1.33% at $239.14 in premarket trading

** Company said on Monday it was considering a plan to separate its high-margin aerospace business, a move backed by activist investor Elliott Investment Management, which has been pushing for its breakup

** The move is a "welcome development", given the continued underperformance of HON's shares and its undervaluation, says brokerage Berenberg

** Raises PT to $300 from $242, a Wall Street high among the 27 brokerages that cover the stock

** Brokerage RBC says the potential separation can allow each entity to operate with greater focus and with simplified organizational structure

** Move to explore options likely opens the door for discussions for "other creative portfolio moves", potentially to include a HON-GE Aero merger - RBC

** Average rating for HON is "buy"; median PT is $243.74 - data compiled by LSEG

** Up to Monday's close, stock up ~13% YTD

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))

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