Volkswagen-Rivian Deal Sparks Opportunity for Honeywell’s Smart Grid Tech

Volkswagen-Rivian Deal Sparks Opportunity for Honeywell's Smart Grid Tech

Volkswagen’s recent investment in the electric manufacturer, Rivian, has sent ripples through the EV market. With this investment, Volkswagen aims to enhance EV charging infrastructure, bringing a surge in public EV charging solutions. This sector boom provides an intriguing opportunity for Honeywell International Inc (HON: NSD), aligning with its Building Technologies division and its smart grid solutions.

 

What Is the Analyst Consensus on HON Stock?

Keeping in mind the potential windfall, Stock Target Advisor’s analysis currently holds a neutral stance on Honeywell stock. The analyst consensus target price stands at USD 227.11 for HON over the next 12 months.

Furthermore, it’s essential to note that 7 market analysts currently covering HON have expressed a consensus rating of Buy. The target price suggested by these analysts varies from a low of USD 215 to a high of USD 244.

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Honeywell: Financial Performance 

Analyzing HON’s trailing 12 months return, the Capital Gain stands at 2.37%, the Dividend Return at 2.05%, giving a Total Return of 4.42%. However, Honeywell’s 5-year growth analysis showcases a Negative Revenue Growth and Earnings Growth.

Profitability ratios of RoA of 7.7%, RoE of 33.2%, and RoIC of 15.26% further underline Honeywell’s performance, while valuation ratios of P/E Ratio of 24.92, P/B Ratio of 8.06, and P/C Ratio of 26.23 also add to the spectrum of analysis.

The Beta Coefficient for Honeywell of 1.03 indicates moderate volatility, adding another dimension to HON’s financial appraisal.

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Conclusion: 

While the actual outcomes hinge on numerous factors, the prospect of Honeywell’s infrastructure technology playing a major role in the public EV charging boom is enticing. The favorable analyst consensus further strengthens the case for investor interest in HON. Nevertheless, investors should maintain their due diligence and continue to monitor the evolving situation.

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