Jefferies Reports Puts And Takes On Honeywell

According to Jefferies, Honeywell Int'l (NYSE: HON) is seeing some puts and takes.

Jefferies said that the acquisition of the Phenol plant from Sunoco, announced in Mid-May is expected to add about $250 million to 2011 results and improve the supply chain for making Caprolactam. “Our $72 PT values HON at an 18% premium to the market multiple of about 13.1x on 2012 EPS of $4.40, based on the potential for above avg growth and strong market positions. Risks include an aborted economic recovery or a spike in raw material or other costs.”

Honeywell Int'l closed yesterday at $56.07.