Honeywell Upgraded to Outperform with $293 Target Amid Aerospace Spin-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy HON?
Source: seekingalpha
- Upgrade Announcement: Wolfe Research upgraded Honeywell's stock rating from Peer Perform to Outperform, raising the price target from $262 to $293, anticipating that the aerospace business separation will serve as a potential upside catalyst, reflecting market recognition of premium valuation multiples for aerospace peers.
- Financial Commitment Delivery: Analyst Nigel Coe noted that Honeywell is increasingly delivering on its financial commitments, with stronger organic sales and order KPIs relative to peers, which not only enhances the credibility of the new leadership team but also lays a foundation for future growth.
- Monetization Potential: Honeywell appears close to monetizing its Quantinuum investment, which Coe estimates could be worth $12 per share in equity value, while the company is also on a credible path to realizing a substantial portion of its $4.4 billion pension surplus, potentially adding another $7 per share in value.
- Optimistic Market Outlook: With the aerospace business spin-off approaching, Honeywell's shares rose 1.6% in trading, indicating market optimism regarding its future performance, and analysts believe this strategic move will further drive the company's long-term growth.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HON?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on HON
Wall Street analysts forecast HON stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 240.880
Low
195.00
Averages
235.07
High
262.00
Current: 240.880
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Honeywell Upgraded to Outperform with $293 Target Amid Aerospace Spin-Off
- Upgrade Announcement: Wolfe Research upgraded Honeywell's stock rating from Peer Perform to Outperform, raising the price target from $262 to $293, anticipating that the aerospace business separation will serve as a potential upside catalyst, reflecting market recognition of premium valuation multiples for aerospace peers.
- Financial Commitment Delivery: Analyst Nigel Coe noted that Honeywell is increasingly delivering on its financial commitments, with stronger organic sales and order KPIs relative to peers, which not only enhances the credibility of the new leadership team but also lays a foundation for future growth.
- Monetization Potential: Honeywell appears close to monetizing its Quantinuum investment, which Coe estimates could be worth $12 per share in equity value, while the company is also on a credible path to realizing a substantial portion of its $4.4 billion pension surplus, potentially adding another $7 per share in value.
- Optimistic Market Outlook: With the aerospace business spin-off approaching, Honeywell's shares rose 1.6% in trading, indicating market optimism regarding its future performance, and analysts believe this strategic move will further drive the company's long-term growth.
See More
The Dow Is Soaring This Year: What Sparked the Surge?
- Market Shift: A significant rotation is occurring in the stock market, moving away from companies potentially disrupted by AI.
- Focus on Tangibles: Investors are increasingly favoring companies that produce tangible goods, as reflected in the performance of the Dow Jones Industrial Average.
See More
Jim Cramer Highlights AI Investment Opportunities
- AI Investment Focus: Jim Cramer emphasized the significance of AI stocks during the Investing Club meeting, particularly highlighting Nvidia as the gold standard in AI computing, with its stunning quarterly results reinforcing the notion of an ongoing Fourth Industrial Revolution.
- Corning's New Strategy: After visiting its Kentucky factory, Jim learned about Corning's ambition to enhance data center connectivity by replacing copper with fiber optics, indicating a strong growth trajectory in the data center market that could drive future company performance.
- Eaton's Acquisition Plans: Eaton's strategy to spin off its eMobility unit and acquire Boyd Thermal aims to bolster its competitive edge in liquid cooling technology, which is crucial for managing heat in AI chips, thereby enhancing its market position.
- Alphabet and Amazon Performance: Alphabet stands out in the AI sector with its strong YouTube and cloud computing divisions, while Amazon's AWS cloud business is accelerating, although both face capital expenditure pressures, they are still viewed as solid long-term investment opportunities.
See More
Key Wall Street Calls on Friday: Upgrades and Downgrades
- Core Stock Rating: Deutsche Bank reiterates its Buy rating on CoreWeave, lowering the price target from $140 to $125, indicating that the company faces uncertainties in its rapidly scaling financial model, which may impact investor confidence.
- Strong Airline Demand: TD Cowen upgrades Southwest Airlines from Hold to Buy with a target price of $66, anticipating strengthened airline demand in 2026, reflecting the potential for industry recovery.
- AI Software Leader: Rosenblatt initiates coverage of Palantir with a Buy rating and a $150 price target, believing the company holds a unique market position in AI with a sustainable growth trajectory, despite a 33% decline from its peak.
- Optimistic Financial Performance: Bank of America raises Dell's price target to $155, based on its broad product portfolio and AI-related growth potential, expecting higher margins in the coming years, although global economic slowdown poses some risks.
See More
Dell Technologies Reports Strong Quarter, Stock Rises 12%
- Dell's Strong Earnings: Dell Technologies reported a blowout quarter driven by AI buildout, resulting in a 12% stock increase, with AI server revenue expected to double to approximately $50 billion in the new fiscal year, highlighting the company's robust growth potential in the AI sector.
- CoreWeave's Capital Expenditure Surge: CoreWeave plans to invest $30 billion to $35 billion in data center construction for 2026, significantly exceeding the Street's estimate of $26.9 billion, and despite a sharp decline in shares, nearly all new capacity is allocated, indicating strong market demand.
- Block's Workforce Reduction: Jack Dorsey's Block announced a 40% workforce cut, stating that intelligence tools have changed company operations, and despite flat revenues in 2025, Morgan Stanley upgraded its rating from hold to buy, reflecting confidence in its potential growth.
- Zscaler's Underwhelming Performance: Although Zscaler delivered a beat-and-raise quarter, its shares fell 11% in premarket trading, indicating market caution regarding software valuations, as analysts remain skeptical about future profitability in the sector.
See More
Analyst Suggests It's the Right Moment to Invest in Honeywell as Stock Gains Momentum.
Corporate Transformation: Honeywell is nearing the completion of a significant corporate transformation.
Investment Opportunity: The current phase of transformation presents a favorable opportunity for investors to consider buying Honeywell stock.
See More
Honeywell Upgraded to Outperform with $293 Target Amid Aerospace Spin-Off
- Upgrade Announcement: Wolfe Research upgraded Honeywell's stock rating from Peer Perform to Outperform, raising the price target from $262 to $293, anticipating that the aerospace business separation will serve as a potential upside catalyst, reflecting market recognition of premium valuation multiples for aerospace peers.
- Financial Commitment Delivery: Analyst Nigel Coe noted that Honeywell is increasingly delivering on its financial commitments, with stronger organic sales and order KPIs relative to peers, which not only enhances the credibility of the new leadership team but also lays a foundation for future growth.
- Monetization Potential: Honeywell appears close to monetizing its Quantinuum investment, which Coe estimates could be worth $12 per share in equity value, while the company is also on a credible path to realizing a substantial portion of its $4.4 billion pension surplus, potentially adding another $7 per share in value.
- Optimistic Market Outlook: With the aerospace business spin-off approaching, Honeywell's shares rose 1.6% in trading, indicating market optimism regarding its future performance, and analysts believe this strategic move will further drive the company's long-term growth.
See More
The Dow Is Soaring This Year: What Sparked the Surge?
- Market Shift: A significant rotation is occurring in the stock market, moving away from companies potentially disrupted by AI.
- Focus on Tangibles: Investors are increasingly favoring companies that produce tangible goods, as reflected in the performance of the Dow Jones Industrial Average.
See More
Jim Cramer Highlights AI Investment Opportunities
- AI Investment Focus: Jim Cramer emphasized the significance of AI stocks during the Investing Club meeting, particularly highlighting Nvidia as the gold standard in AI computing, with its stunning quarterly results reinforcing the notion of an ongoing Fourth Industrial Revolution.
- Corning's New Strategy: After visiting its Kentucky factory, Jim learned about Corning's ambition to enhance data center connectivity by replacing copper with fiber optics, indicating a strong growth trajectory in the data center market that could drive future company performance.
- Eaton's Acquisition Plans: Eaton's strategy to spin off its eMobility unit and acquire Boyd Thermal aims to bolster its competitive edge in liquid cooling technology, which is crucial for managing heat in AI chips, thereby enhancing its market position.
- Alphabet and Amazon Performance: Alphabet stands out in the AI sector with its strong YouTube and cloud computing divisions, while Amazon's AWS cloud business is accelerating, although both face capital expenditure pressures, they are still viewed as solid long-term investment opportunities.
See More
Key Wall Street Calls on Friday: Upgrades and Downgrades
- Core Stock Rating: Deutsche Bank reiterates its Buy rating on CoreWeave, lowering the price target from $140 to $125, indicating that the company faces uncertainties in its rapidly scaling financial model, which may impact investor confidence.
- Strong Airline Demand: TD Cowen upgrades Southwest Airlines from Hold to Buy with a target price of $66, anticipating strengthened airline demand in 2026, reflecting the potential for industry recovery.
- AI Software Leader: Rosenblatt initiates coverage of Palantir with a Buy rating and a $150 price target, believing the company holds a unique market position in AI with a sustainable growth trajectory, despite a 33% decline from its peak.
- Optimistic Financial Performance: Bank of America raises Dell's price target to $155, based on its broad product portfolio and AI-related growth potential, expecting higher margins in the coming years, although global economic slowdown poses some risks.
See More
Dell Technologies Reports Strong Quarter, Stock Rises 12%
- Dell's Strong Earnings: Dell Technologies reported a blowout quarter driven by AI buildout, resulting in a 12% stock increase, with AI server revenue expected to double to approximately $50 billion in the new fiscal year, highlighting the company's robust growth potential in the AI sector.
- CoreWeave's Capital Expenditure Surge: CoreWeave plans to invest $30 billion to $35 billion in data center construction for 2026, significantly exceeding the Street's estimate of $26.9 billion, and despite a sharp decline in shares, nearly all new capacity is allocated, indicating strong market demand.
- Block's Workforce Reduction: Jack Dorsey's Block announced a 40% workforce cut, stating that intelligence tools have changed company operations, and despite flat revenues in 2025, Morgan Stanley upgraded its rating from hold to buy, reflecting confidence in its potential growth.
- Zscaler's Underwhelming Performance: Although Zscaler delivered a beat-and-raise quarter, its shares fell 11% in premarket trading, indicating market caution regarding software valuations, as analysts remain skeptical about future profitability in the sector.
See More
Analyst Suggests It's the Right Moment to Invest in Honeywell as Stock Gains Momentum.
Corporate Transformation: Honeywell is nearing the completion of a significant corporate transformation.
Investment Opportunity: The current phase of transformation presents a favorable opportunity for investors to consider buying Honeywell stock.
See More
