Analyst Note
| Joshua Aguilar |While Honeywell’s market value fell on the trading day, there wasn’t too much in the wide-moat firm’s second-quarter print to pick on, in our view. Therefore, we lift our fair value estimate by 4% to $211 per share from $203 previously, mostly because we now expect less personal safety revenue from respirator sales, which had a positive impact on our operating margin projections (for reference, we’re modeling segment operating profits margins of 21.1% for full-year 2021, at the top end of the range). While there were other minor puts and takes, the primary offset to our more bullish view was a higher U.S. corporate tax rate in 2022, in line Morningstar’s probability-adjusted view that the U.S. Congress will implement higher rates next year.