https://www.tipranks.com/news/honeywell-stock-forecast-gets-slashed-drastically-by-bank-of-america-analyst-heres-why
Anyone surprised? I'm not. This place is an inept joke. What are the worst management decisions you've seen this past year?
18 replies (most recent on top)
Like I keep saying .....wait for the split after the split. It will just keep being broken down.
Speculators are anticipating the BofA downgrade will generate a merger or aquisition movement once the aerospace spinoff is complete. Insiders discern a stock price below 120 will motivate larger companies GE, BOE, P&W.
@fd, The hatred is well earned. Any company that regularly eats its own young (and old) to survive is not Wall Street viable.
Different poster but.. I was in a lecture several years ago that discussed culture fit as part of CEO selection. They covered the disaster that was created at blue origin trying to move Honeywell culture to that business. The point being culture changes by the stage of business. A different class did two lectures on spinoffs and worshipped Honeywell for how they sc--wed Garrett motion and dumped asbestos liability. Big name school that would identify me if I named it.
@qt Can you please tell me more? Which school and what is the case study about? It would be helpful to know. The Elliott letter had more knowhow on Honeywell than anything else I have read or had been told by leadership.
@q4 Funny you say that. We just did a case study in my MBA course on Honeywell’s toxic culture. They are already teaching it.
@kr I never heard a leader explain accelerator’s value, just a lot of hyperbole about how great it was. The only thing that has been accelerated is HON’s demise. The downfall of a legacy brand like this will eventually be taught in business school.
Deccellerator is a joke. A useless tool, used to generate artificial buy in, from young employees, in lieu of actual substantial contributions.
Buy buy buy!
@fy what’s your take on accelerator?
Worst decision this year?
Not doing massive layoffs for directors, sr directors and VPs. It’s a pool of sharks - too many roles bc they are constantly focused on sc--wing eachother and not actually working together.
@bx - You are right. UOP problems are just beginning to show publicly as they reported -13% organic growth for Q3. That is very very ugly and the leadership doesn't know how to manage through it. Petrochemicals demand is anemic and will get worse. The days of pulling forward demand are over. Refining demand is negative margin. Adsorbents is not a growth market. Aftermarket Services is laying off employees even though headcount is required to grow the business. Projects business focuses on pushing EACs onto customers to try and close gaps. LNG market is a brightspot but HON overpaid for it. But let's all celebrate delivering a ship or a truck at 11:59pm on the last day of the quarter!
Some really harsh comments by the BoFA analyst.
"Obin says that the Solstice spin and the current Aerospace CEO have fallen short of their own and investors' expectations, as some anticipated an external CEO hire. Honeywell's EPS growth continues to lag peers, projected at ~7% y/y in 2026E versus 13% for peers, adds the analyst. Also, the analyst writes that EBITDA margins peaked at 25.9% in 2023 but fell to 25.0% in 2025E, slightly below peers at 25.2%, with Aerospace contributing most to the decline."
Look what corp accelerator and strategy teams are working on; the madness and business disconnect are clear. Add HR on top of this and it is double down sheet shouw.
This company could cr-p gold brick and Wall Street would still hate this company
The entire breakup is the definition of cowardice and lack of vision. To be blunt the ceo said “ sure .. I don’t have any better ideas”
Now they tap insiders to lead and promise “more of the same!”.
Second verse
same as the first
Sung by a chorus
Still gonna bore us
What is the worst decision? At least one of the recent ones is what the BoA report identified. Spinning of the organically growing Advanced Mtls and retaining zero organic growth UOP.
Laying off global marketing leaders, telling the teams to do nothing while they “finalized” the new teams, taking two months to create the new teams, announcing the new teams as everyone was leaving of Christmas holidays, then acting shocked, SHOCKED that the Q1 numbers were awful.
Laying off the social media resource and giving the role to a data scientist who didn’t even have a LjnkedIn account.
Moving social media billing to an agency that couldn’t manage the volume of work that HON generated, claiming the move would get HON better rates (it didn’t).