Honeywell: This Wide-Moat Industrial Conglomerate Offers Investors Modest Upside

After taking a fresh look at this multi-industry stalwart, we’ve increased Honeywell’s fair value estimate to $238 per share from $226 derived from a slightly more bullish view on its growth prospects. We’ve maintained our wide-moat economic moat rating and Exemplary capital allocation rating. Near-term, we expect the ongoing narrow-body plane shortage to drive supranormal commercial aviation aftermarket growth, and the continual reshoring of supply chains to spur demand for Honeywell’s building and warehouse products.