TLDR
- Honeywell will split into two independent companies — Honeywell Aerospace (HONA) and Honeywell Technologies (HON) — on June 29, 2026.
- Analysts see combined upside of roughly 30–35%, with a split-adjusted target of ~$290 vs. the current ~$205.88.
- Honeywell Aerospace posted 2025 sales of $17.4B with ~25% operating margins, well above the industry average of ~17%.
- Honeywell Technologies is expected to target low-double-digit EPS growth, with Goldman Sachs valuing the automation business at ~$85B.
- Sanford C. Bernstein upgraded HON to Hold, while Goldman Sachs raised its price target to $276 with a Buy rating.
Honeywell International stock is trading at $205.88, down 4.6%, as investors digest its upcoming split into two separate companies. The industrial giant will divide into Honeywell Aerospace (HONA) and Honeywell Technologies (HON), with the split taking effect before the market opens on June 29, 2026.
Honeywell International Inc., HON
The company is also executing a 1-for-2 reverse split on the same date, which will adjust shareholder positions accordingly.
Analysts are drawing clear comparisons to the GE breakup of 2024. That move saw GE Aerospace rise 84% post-spin, while GE Vernova surged over 550%. Honeywell’s management and several Wall Street analysts believe a similar re-rating is possible here.
“This is not a distressed breakup. It is a valuation breakup,” said Jim Osman of The Edge research. The combined value of both new entities, he and others argue, could push the split-adjusted stock price toward $290 — more than 30% above current levels.
Investors looking to participate can either wait until after June 30 to pick their preferred entity, or buy now and receive both.
Honeywell Aerospace: The Case for a Re-Rating
Honeywell Aerospace will trade under the ticker HONA. The business generated $17.4 billion in sales in 2025, up 12% year over year, with operating margins of nearly 25%. The average for aerospace and defense peers in the Russell 1000 sits closer to 17%.
Operating profit is projected to top $6.5 billion by 2030, growing roughly 8% annually. GE Aerospace, for comparison, is expected to grow operating profit closer to 11% a year.
If Honeywell Aerospace’s growth approaches GE’s pace, its valuation multiple could expand meaningfully. GE Aerospace trades at about 40x forward earnings. Honeywell currently trades at about 19x — a gap that bulls argue should close post-split.
The business is not without challenges. Jefferies analyst Sheila Kahyaoglu noted recent execution lag behind supplier expectations. The company hired a new chief supply chain officer, Katherine Worthen, to address chokepoints. Capital Alpha Partners analyst Byron Callan said the “intent is to work closer with suppliers to smooth schedule issues.”
Even at the low end of its peer group, Honeywell Aerospace would be worth around $120 billion. Honeywell holders will receive one HONA share for every two HON shares held.
Honeywell Technologies: Low Expectations, Some Upside
Honeywell Technologies will retain the HON ticker and hold the building, process, and industrial automation businesses. Its software and hardware manage roughly 10 million buildings worldwide.
If fully independent in 2026, the company would post expected sales of $19.9B–$20.2B and EPS of $3.95–$4.15.
Goldman Sachs analyst Joe Ritchie values the automation business at about $85 billion, or ~$125 per share after adjusting for debt. That implies a valuation of roughly 30x estimated 2026 earnings.
BNP Paribas analyst Andrew Buscaglia said expectations are “relatively low” heading into Honeywell Technologies’ Investor Day on June 11, and he expects the company to target low-double-digit EPS growth in coming years.
Quantinuum, Honeywell’s quantum computing stake, adds roughly $10 per split-adjusted share, following its $1.68 billion IPO raise.
Current analyst consensus stands at 13 Buy ratings, 9 Holds, and 1 Sell, with an average price target of $246.63.
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