Investor favorite Honeywell (HON) has had a healthy run thus far this year, bolstered by continued interest in companies exposed to aerospace and defense, as well as news that activist hedge fund Third Point (headed by Dan Loeb) had built a hefty little stake in the company in order to push for change. With the news that the fund had already begun reducing its stake less than a year after its initial investment, it seems that any activist-driven move to supposedly unlock value (spin-off, larger shareholder returns) seems less and less likely. Given that Honeywell now trades near all-time highs on trailing valuation multiples, are the expectations that have been baked into the company’s share price attainable? Or is this another case of a high-flying large cap that simply is too expensive for its own good?
