Honeywell International Inc. (HON) - Get Report is scheduled to hold its annual analysts' meeting at its New Jersey headquarters on Wednesday, Feb. 28, but RBC Capital analyst Deane Dray doesn't believe any stock-moving news will come from it.
Dray does see the company relaying underlying positive information during the meeting, just not any that will move markets.
Honeywell, a key holding in the Action Alerts PLUS Charitable Trust Portfolio, is spinning off its turbocharger business into a new publicly listed company by the end of the year. The company also plans to spin off its home and ADI global distribution business.
"After an uncharacteristically bumpy 2016, the leadership handoff at Honeywell was admirably smooth, and Darius (Adamczyk) has crisply delivered his first four quarters as CEO. We would characterize expectations for his first solo annual analyst meeting as 'stay the course,'" Dray wrote in Monday's note.
Dray also expects the company to detail the impact of the U.S. tax reform law on its capital allocation plans while also detailing its plans for the upcoming spinoffs.
The firm last took action on Jan. 3, downgrading Honeywell shares to "sector perform" from "outperform" due to the belief that Honeywell's upside results "have become the base case and the most impactful near-term catalysts have played out."
Those near-term catalysts include the recent CEO transition, activist demands for a portfolio review that has since occurred and the spinoff announcements.
RBC also expects Honeywell to reiterate its long-term target of 100% free cash flow conversion and 30 to 50 basis point bump in annual margin expansion.
Honeywell shares have risen just more than 1% year to date.