Update shared on20 Sep 2025
Fair value Increased 19%Resideo Technologies’ consensus price target was raised from $35.00 to $41.50 as analysts cited resolution of the Honeywell agreement, reduced financial risk, and the value-unlocking ADI spinoff as key drivers for a higher fair value.
Analyst Commentary
- Resolution of the indemnification and reimbursement agreement with Honeywell eliminates a significant financial burden.
- The definitive agreement paves the way for Resideo to fully accelerate and settle future obligations with Honeywell.
- The upcoming spinoff of the high-quality ADI distribution business is expected to unlock shareholder value.
- The spin makes a higher sum-of-the-parts valuation more concrete and achievable.
- Bullish analysts are more comfortable assigning a higher price target given reduced risk and clearer path to value creation.
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 previously announced buyback; no shares repurchased in the recent quarter.
- Issued Q3 2025 net revenue guidance at $1,850 million – $1,900 million.
- Q2 2025 net revenue now expected to exceed the previously provided high-end outlook of $1,855 million.
Valuation Changes
Summary of Valuation Changes for Resideo Technologies
- The Consensus Analyst Price Target has significantly risen from $35.00 to $41.50.
- The Future P/E for Resideo Technologies has significantly risen from 11.74x to 13.79x.
- The Discount Rate for Resideo Technologies remained effectively unchanged, moving only marginally from 9.18% to 9.02%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.