- Honeywell posted better revenue and segment profits for the fourth quarter, and guidance for 2021 was consistent with the recovery story.
- Near-term Aero results are more tied to improving air traffic levels (aftermarket), but new-builds should start recovering in 2021 and into 2022.
- Demand for logistics/warehouse automation remains very strong, and Honeywell is enhancing its process automation opportunities, but exposure to refining and oil/gas remains a headwind.
- I think Honeywell is a top-tier industrial company with strong long-term growth potential (7% FCF growth), but the valuation more than captures that potential.
For further details see:
Honeywell In Recovery Mode, But Valuation Is Tough