Honeywell (NYSE:HON) Driven by Commercial OE, Aftermarket

Although Honeywell (NYSE:HON) is struggling to generate revenue in the Defense & Space, they look to product organic growth in Commercial OE and aftermarket, says FBR Capital.

FBR said, "Our key takeaway from the well-attended Honeywell Aerospace analyst meeting was that despite a flat to modestly declining revenue outlook for Defense & Space (D&S, 50% of segment revenues), improving trends in Commercial OE and aftermarket should drive low- to mid-single-digit organic growth for the segment in 2011. Key drivers of this positive outlook include new products (synthetic vision, next-gen flight management systems, etc.) and upgrades that are helping drive aftermarket business with business jets and airlines, a focus on winning content on the “right/successful” customer aircraft/platforms, and increasing international sales where Honeywell, for example, is well ahead of competition with significant wins on the China C919."

FBR maintains their "Market Perform" rating on Honeywell, which closed Monday at $49.65, dropping $0.13, or 0.26 percent. FBR has a price target of $57 on them.