Honeywell (HON) is well-positioned to grow in 2012, and investors should jump on the bandwagon now, says Citi analyst Deane Dray in upgrading his rating on the company’s shares to Buy from Neutral.
“We are shifting our recommendations to favor companies that appear better positioned for a choppier and slower growth environment including those with more late-cycle exposure and higher contributions from recurring revenue. HON has the sector-highest exposure to Aero at 28% of revenues and visibility in its late-cycle businesses (50% of revs vs 28% sector average).”
One potential risk: Honeywell has a relatively high exposure to Europe (26% versus 19% on average), Dray notes.
Dray also upgraded Emerson Electric (EMR) to Buy.
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