Honeywell is a buy as planned break-up continues, JPMorgan says
Investors should scoop up shares of Honeywell before the company completes its breakup, according to JPMorgan. The bank upgraded the stock to overweight from neutral. Its price target of $255, up from $218, implies a gain of 18%. Honeywell in October spun off its advanced materials division, which now trades as Solstice Advanced Materials. The company also said in late 2025 its Honeywell Aerospace spinoff was on schedule. HON 1Y mountain HON 1-yr chart Still, analyst Stephen Tusa thinks a clear buying opportunity is emerging ahead of the break-up. “HON has extended its discount to the standing [Sum Of The Parts valuation], and we view the messy 2026 EPS profile, which will be cleared with guide, as creating an opportunity ahead of the looming break-up,” he wrote to clients. “While the 2026 enterprise estimates have moved lower and only show flat performance on a reported basis, this is less relevant than ever, due to portfolio moves.” “Bottom line, we think the company is setting up to be a cleaner story heading into the year of the spin with the bulk of dilutive portfolio actions behind, we tweak up our target multiple to a 5% discount to the sector given increasing visibility on the SOTP story,” he said. The stock ticked higher by around 1% following the upgrade. Analysts overall are split on the stock, however. LSEG data shows that 17 of the 31 who cover Honeywell rate it a buy or strong by. The remaining 14 assigned a hold or underperform rating.
<
