Honeywell's PT Raised To $68, Strong Potential Expected

Jefferies & Company has published a research report on Honeywell International (NYSE: HON) and believes the company has an attractive collection of business that will create the potential for consistent and above-average returns.

In the report, Jefferies writes "Honeywell reported Q4:2010 EPS of $0.47 and 2010 EPS of $2.59 vs. $0.20 and $2.06 for the final quarter of 2009, and full-year 2009, respectively. Adjusted for a pension mark-to-market, EPS would have been $0.87 and $3.00 for the quarter and 2010 year, respectively. We continue to estimate EPS of $3.80 for 2011 and are boosting our 2012 EPS estimate to $4.25 from $4.20. The company announced it had entered into an agreement to sell its Consumer Products Group (CPG) to Rank Group, a private equity investment company for $950 million, with a close set for the third quarter of 2011. FRAM oil and air filters, Prestone anti-freeze, and Autolite spark plugs are among the products sold and marketed by the unit. Wal-Mart is its largest customer, and the business is largely based in North America. We operating margins are in the 11% range for this $1 billion business."

Jefferies maintains its Buy ratings and has raised the price target from $60 to $68.

Honeywell International closed Friday at $55.32.