Nomura has issued a Buy rating on Honeywell Automation, setting a target price of ₹60,800, which implies a potential upside of 24% from the current market price of ₹49,100.00.
Key insights from Nomura’s report:
- Margin Disappointment: The margin underperformance in recent results was attributed to an inferior product mix, primarily due to sluggish export demand from non-Honeywell entities.
- Outlook on Margins: Despite the recent challenges, Nomura expects a margin recovery in the second half of FY25 as the product mix improves.
- Valuation: Honeywell Automation currently trades at 54x FY26 and 44x FY27 projected earnings per share (EPS), reflecting its growth potential in a high-value industrial segment.
Nomura’s target price indicates confidence in Honeywell Automation’s ability to bounce back with improved margins in the coming quarters, making it a stock to watch for long-term investors.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should perform due diligence before making investment decisions.
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