Forecast Of The Day: Honeywell Process Solutions & Performance Materials Revenue

+5.45%
Upside
214
Market
226
Trefis
HON: Honeywell logo
HON
Honeywell

What?

Honeywell’s (NYSE:HON) Process Solutions & Performance Materials Revenue declined from around $10.8 billion in 2019 to about $9.4 billion in 2020. Trefis expects the metric to recover to around $10 billion by 2022 and rise steadily going forward.

Why?

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While sales were impacted in 2020 by the Covid-19 pandemic, we expect longer-term growth to be driven by the company’s expansion into high-growth regions and its focus on the modular design of components.

So What?

We estimate Honeywell valuation at about $248 per share, about 16% ahead of the current market price. This represents a P/EBITDA multiple of 29x for the company based on our forecast for Honeywell’s EBITDA for the current fiscal year.

See Our Complete Analysis For Honeywell

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Returns Jan 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 HON Return 2% 2% 93%
 S&P 500 Return -4% -4% 105%
 Trefis MS Portfolio Return -9% -9% 257%

[1] Month-to-date and year-to-date as of 1/19/2022
[2] Cumulative total returns since the end of 2016

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