With the rise of artificial intelligence, machine learning, and advanced analytics, the world is becoming smarter in many ways. So, why not extend this intelligence to your office building as well?
Honeywell, a leader in building technologies, has recently unveiled its new platform for building controls called Advanced Control. This innovative platform aims to automate building management and serve as the foundation for an energy-efficient strategy.
According to Honeywell, Advanced Control empowers building managers with greater control over their buildings’ efficiency, ultimately enhancing the occupant experience while advancing energy management goals. By integrating cutting-edge technology, this platform offers cost-effective and efficient controls that can revolutionize the way buildings are managed.
To further enhance the capabilities of Advanced Control, Honeywell has partnered with chip makers NXP Semiconductors and Analog Devices. Through this partnership, Honeywell can leverage smarter hardware with increased computing power at the “edge” of the platform. This means that these devices can perform tasks independently, eliminating the need for constant communication with a central computer. The result is not only more intelligent and autonomous controls but also a reduction in overall costs.
The significance of energy efficiency cannot be overstated. Honeywell estimates that buildings contribute to approximately 37% of global carbon emissions. As sustainability becomes a top priority for businesses worldwide, Honeywell’s Advanced Control platform offers a practical solution to combat this pressing issue.
Although this new platform has great potential to drive market share for Honeywell, investors have remained relatively unimpressed. Honeywell’s shares experienced a slight decline of about 0.9% in premarket trading, while S&P 500 and Nasdaq Composite futures remain steady.
However, it is important to note that Honeywell already has a strong foothold in the buildings and building management space. During the third quarter alone, its building-technologies segment generated an impressive $1.5 billion in revenue, accounting for approximately 16% of the company’s total sales. Additionally, its operating-profit margins exceeded 25%.
Looking ahead, the key event that could impact Honeywell’s stock performance will be the release of fourth-quarter earnings on February 1. Analysts at BofA Securities, such as Andrew Obin, suggest that if Honeywell’s 2024 guidance aligns with expectations, it should be favorable for the stock.
Wall Street analysts anticipate an earnings per share of $9.97 for Honeywell by 2024, surpassing the estimated $9.17 for 2023.
With a buy rating and a price target of $250, Obin remains optimistic about Honeywell’s future prospects. Overall, approximately 58% of analysts covering the company’s shares have also assigned a buy rating, with an average price target of $219. This is slightly higher than the average buy-rating ratio for stocks in the S&P 500, which stands at around 55%.