Jim Cramer is Enthusiastic About Honeywell (HON) Split

We recently published 8 Stocks on Jim Cramer’s Radar.  Honeywell International Inc. (NASDAQ:HON) is one of the stocks on Jim Cramer’s radar.

Honeywell International Inc. (NASDAQ:HON) is an industrial conglomerate that is currently in the news due to its decision to split into three firms. One of these, Solstice Advanced Materials, started trading on the stock market earlier this year, while the other business, Honeywell Aerospace, is expected to complete the separation next year. On December 15th, Evercore ISI initiated coverage on Honeywell International Inc. (NASDAQ:HON)’s stock and set an Outperform rating along with a $255 share price target. The financial firm outlined that the industrial company could benefit from economic growth, which could provide earnings power. However, on November 10th, TD Cowen had cut Honeywell International Inc. (NASDAQ:HON)’s share price target to $240 from $250 and kept a Buy rating, according to The Fly. The shift was made following the firm’s third-quarter earnings. On December 22nd, Honeywell International Inc. (NASDAQ:HON) made an important announcement when it revealed that it would incur a one-time payment of $470 million related to FlexJet. Cramer discussed the announcement and the spinoff:

Jim Cramer is Enthusiastic About Honeywell (HON) Split

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“Yeah and I was going over it with Jeff Marks, we do own it for he charitable trust. It’s getting hit for that. The Flex Jet was a big, big cash charge. I think that what matters is the core business but I recognize maybe no one, I don’t think a lot of people expected 470 million, they think maybe that a lot of people did. But when you look at it, you say, wait a second, that wasn’t in my numbers. I still think Honeywell is very valuable, because they’ve got aerospace, they’re splitting the company up. I think the chemical company, we kept the chemical company for the trust. It seems like by far the cheapest chemical company in a group that’s hated.”

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Disclosure: None. This article is originally published at Insider Monkey.