RBC Upgrades Honeywell (HON) to Outperform, Sees Catalyst-Rich Phase Ahead

Core Insights - Honeywell International Inc. (NASDAQ:HON) is recognized as a leading name in the diversified industrial sector, providing a wide array of products and solutions across various sectors and global markets [2] - RBC Capital Markets upgraded Honeywell's shares from Sector Perform to Outperform, raising the price target from $235 to $253, citing a strong third-quarter performance in 2025 and the anticipation of a "catalyst-rich phase" as the company plans to separate its Aerospace and Automation units in late 2026 [3][4] Financial Performance - The upgrade by RBC reflects the growing strength in Honeywell's core operations, improved clarity around execution, and a credible plan to unlock value, indicating significant upside potential supported by effective management and strategic progress [4] - Honeywell has consistently raised its dividends 16 times over the past 15 years, making it an appealing option for income investors and a strong candidate for retirement portfolios [6] Future Outlook - Investor focus is expected to shift towards the long-term opportunities presented by the two independent entities that will emerge post-split, each anticipated to achieve steady growth and margin improvements as the transition uncertainty diminishes [5]