DB Alex. Brown believes an agreement will come through for Honeywell (HON ) and General Electric (GE ).
Analyst Harriet Baldwin says the deal is approvable on political and competitive merits. She expects stock price and news flow volatility, but notes that the companies are down to the last details. If the GE deal breaks up, Baldwin says, and another suitor doesn't appear quickly, Honeywell could trade as low as $33-$35 while investors decide how wounded the company's core businesses are, and what 2002 EPS might be. Her near-term fair value price for stand alone Honeywell is about $36-$38, and Baldwin believes $52-$53 is the current fair value assuming the GE deal closes.