Cramer Trust Halves Honeywell Position Over Iran War Risks — SkimNews
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- Jim Cramer's Charitable Trust is selling 110 shares of Honeywell Technologies (HON) at roughly $209 each, halving its remaining position and cutting portfolio weighting from ~1.15% to 0.58%.
- The position is being downgraded from a buy-equivalent 1 rating to a sell-on-further-strength 3, despite Wednesday's additional 2.6% gain.
- Honeywell CEO Vimal Kapur told the Morgan Stanley Laguna Conference that organic revenue growth is tracking toward the upper end of the company's 4%-6% Q3 outlook, with similar momentum expected in Q4.
- Shares of HON are down more than 10% since August in a near-straight line, even with the recent two-day rally.
- The trust cites Iran war headwinds — Honeywell lost revenue in Q1 and Q2 because of the Middle East conflict, and current tensions suggest those drags could persist through year-end.
- Wall Street analysts model roughly 20% EPS growth in 2027 off of $8.32 in 2026, per FactSet, while management guides to only 15% — a gap that could pressure the stock if estimates come down.
- The trust will realize a high single-digit percentage gain on HON shares purchased in 2023 and 2024.
Why it matters: With HON down over 10% since August even after reaffirmed guidance, the trust is monetizing a partial recovery while flagging two distinct risks directly stated in the source: prolonged Iran war revenue drag in the Middle East and a likely downward revision to consensus 2027 EPS estimates that sit ~5 points above management's 15% guidance.
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