Honeywell's (NYSE:HON) Longer Cycle Businesses Major 2011 Catalysts

Honeywell International (NYSE:HON) will mostly be propelled in 2011 by their longer cycle businesses, said Barclays, adding they'll offset the expected decline in shorter-cycle businesses.

Barclays said, "Improving order rates in the company's longer cycle businesses should propel results in 2011: We think sales growth could slow in the company's shorter-cycle businesses such as turbochargers and general industrial, but that this slowing will be more than offset by accelerated growth in the longer cycle businesses such as commercial aerospace, ACS Solutions and UOP.

"Honeywell is in the first year of recovery, and during the initial phase of the last cycle the stock traded at an average P/E of -18.5x NTM. As the recovery continues to materialize, we think the multiple could expand closer to the average of the prior cycle...Raising price target to $65 which is based on -17x our 2011 estimate of $3.80."

Barclays reiterates an "Overweight" rating on Honeywell International (HON), which closed Tuesday at $54.76, losing $0.26, or 0.47 percent. Barclays raised their price target on Honeywell from $60 to $65.