Should You Buy the Honeywell Aerospace Spinoff?
Honeywell International (NASDAQ: HON), one of the world's largest industrial conglomerates, continues to dismantle itself. Less than a year after spinning off Solstice Advanced Materials, the company is gearing up for an even larger spinoff.
Later this month, Honeywell will split into two separate companies: Honeywell Aerospace and Honeywell Technologies. The expectation is that each company, as a pure play in its respective industry, will receive a higher valuation than the diversified Honeywell has as a public company.
However, while spinoffs are a useful tool for maximizing shareholder value, they aren't necessarily a silver bullet. Let's take a closer look at the math behind this transaction, as well as recent price action with Honeywell shares, and determine whether it's worthwhile to buy Honeywell Aerospace, as well as when exactly to buy it.
Source Fool.com
Honeywell International Stock
The stock is an absolute favorite of our community with 45 Buy predictions and no Sell predictions.
With a target price of 223 € there is a slightly positive potential of 9.74% for Honeywell International compared to the current price of 203.2 €.
