Update shared on05 Sep 2025
Despite the consensus price target for Resideo Technologies holding steady at $35.00, analysts highlight that resolving obligations to Honeywell and the planned ADI spin-off improve the capital structure and unlock value, reinforcing confidence in the company’s strategic direction.
Analyst Commentary
- Elimination of future monetary obligations to Honeywell resolves a major financial burden for Resideo.
- The definitive agreement with Honeywell is viewed as a highly positive corporate development.
- Impending spin-off of the high-quality ADI distribution business is expected to unlock significant value.
- The spin-off increases confidence in sum-of-the-parts valuation, making it actionable rather than theoretical.
- Bullish analysts are now more comfortable with a higher price target given improved capital structure and strategic clarity.
What's in the News
- Raised full-year 2025 net revenue guidance to $7,450 million – $7,550 million.
- Completed repurchase of 2,634,000 shares (1.79%) for $42.62 million under existing buyback program; no additional shares repurchased in the latest quarter.
- Issued third quarter 2025 net revenue guidance of $1,850 million – $1,900 million.
- Indicated second quarter 2025 results are expected to exceed the high end of previously guided revenue outlook ($1,805 million – $1,855 million).
Valuation Changes
Summary of Valuation Changes for Resideo Technologies
- The Consensus Analyst Price Target remained effectively unchanged, at $35.00.
- The Future P/E for Resideo Technologies has risen from 10.94x to 11.75x.
- The Net Profit Margin for Resideo Technologies has fallen from 8.03% to 7.47%.
Disclaimer
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