- Mizuho analyst Brett Linzey initiates coverage of three Industrial conglomerates.
- The analyst initiated Roper Technologies Inc (NYSE:ROP) with a Buy rating and a price target of $550, implying an upside of 13%.
- Linzey noted Roper has been on a multi-year transformation into predominantly software and medical businesses and away from its legacy industrial assets.
- The analyst added the company "doesn't appear to be slowing down on portfolio pruning." Despite the portfolio moves, the stock currently trades at a discount to its 10-year average.
- The analyst initiated 3M Co (NYSE:MMM) with a Neutral rating and a price target of $180 (an upside of 1%).
- Linzey noted operating environment remains challenging, with 3M lowering expectations at an investor conference last week. The analyst sees "too much uncertainty" for the shares.
- The analyst initiated Honeywell International Inc (NASDAQ:HON) with a Buy rating and a price target of $245, implying an upside of 16.9%.
- Linzey mentions, the company's "late-cycle drivers" in aerospace, non-residential and industrial end markets are picking up.
- However, he believes "patience is warranted" for Honeywell shares as supply issues continue to impact the business.
- Price Action: ROP shares closed higher by 1.60% at $486.95, MMM higher by 1.44% at $178.31, and HON lower by 0.07% at $209.61 on Thursday.
