Shares of Honeywell
International jumped 1 percent on Friday after Daniel
Loeb’s Third Point disclosed a stake in the
conglomerate and called on the company to spin off its
aerospace unit. However, the stock had risen nearly 4 percent
earlier in the trading session.
In its first-quarter
letter, made public after the market closed the day before, the
sometime-activist firm stated that "despite the attractive
positioning and financial characteristics of
Honeywell’s assets," the stock still trades at a
"substantial discount to its industrial peer group."
Third Point thinks the spinoff would boost shareholder
value by $20 billion. "It is clear to us, as well as several
sell-side analysts, that Aerospace’s presence in
the portfolio is the chief cause of Honeywell’s
discounted valuation and that Aerospace would be better off as
a stand-alone entity," Third Point adds.
In a statement, Honeywell
said it tries to keep an open dialogue with all of its
shareholders. "Honeywell’s management and Board
regularly conduct portfolio assessments and have a demonstrated
track record of effective portfolio realignment and capital
deployment actions. Regarding the Third Point investment
thesis, we intend to take the time necessary to ensure a
comprehensive, informed and objective review of the potential
separation of the Aerospace business."
Shares of KKR rose about
1.3 percent to $18.98 after
ValueAct Capital disclosed it held a 4.9 percent position
in the private equity pioneer. Speaking at a conference,
ValueAct Capital Management President Mason Morfit said the
stock is worth closer to $37 a share.
UBS raised its price
targets on Alphabet and Amazon.com the morning after the two
internet giants reported revenues and earnings that blew
through consensus estimates.
The investment bank
raised its target on the C shares of search giant Alphabet, the
parent of Google, from $980 to $1,050, citing a hike in its
earnings estimate as well as a slight increase in its
price-to-earnings multiple assumption. The stock climbed 3.6
percent, to close at $905.96.
UBS raised its price
target on e-commerce giant Amazon.com from $930 to $1,100. "For
long-term investors, Amazon (at current levels) still presents
a secular growth category winner in two categories -- global
eCommerce and cloud computing adoption," the bank states in a
separate note to clients. The stock rose 0.7 percent, to close