Stock price when the opinion was issued
Business model has come under pressure, not too many industrial conglomerates left. So much hidden value that can be unlocked over the next 2-3 years. Wonderful aerospace and defense, as well as automation. Separating them makes a lot of sense. Valuation is very attractive. Yield is 2%.
(Analysts’ price target is $247.09)Special situation. Industrial conglomerate with 2 phenomenal businesses, aerospace and automation. Over the next year will split into 2 separate companies, each with its own capital allocation framework; potential to unlock a lot of value of between 50-100%.
Trades ~20x PE, really good upside. He'd say to hold both those businesses once they come into being next year. Yield is 2.2%.
It's been caught up in this movement in quasi-industrial stocks with military-government projects, all due to better global growth. The stock has risen since Trump came in, pronouncing "America First." That said, he's concerned with global growth going forward and HON's margin costs. He wouldn't buy it now.