Analysts See 27% Upside Potential For Honeywell International Inc. (HON)

Core Viewpoint - Honeywell International Inc. is undergoing significant restructuring, including the separation of its Aerospace and Automation businesses by mid-2026, which analysts believe presents both opportunities and challenges for the company [2][4]. Group 1: Company Developments - On October 30, Honeywell completed the spin-off of its Advanced Materials business and appointed Jim Currier as President and CEO of Honeywell Aerospace, which is set to become an independent company by the second half of next year [3]. - The company announced plans to create three separate publicly listed companies by the second half of 2026, focusing on Automation and Aerospace Technologies alongside the already spun-off Advanced Materials [4]. Group 2: Analyst Ratings and Market Performance - BofA downgraded Honeywell's stock rating from Buy to Underperform and reduced its price target from $265 to $205, reflecting concerns about the company's future performance [1]. - Despite the downgrade, the stock has a one-year average price target of $241.67, indicating a potential upside of 27.20% [5]. - More than half of the 23 Wall Street analysts covering Honeywell maintain a Buy rating or higher, suggesting a generally positive outlook among analysts [5]. Group 3: Financial Performance - Honeywell's stock is down 11% year-to-date as of the close on November 26, indicating challenges in the current market environment [6]. - Analysts expect insignificant EPS growth for the next year, which may further pressure the stock [3].