** Honeywell HON.O raised its annual forecasts after beating Wall Street expectations for second-quarter results on Thursday, buoyed by strong demand for its aerospace parts and maintenance services

EXPANSION PUSH COULD PRESSURE MARGINS BEFORE LONG-TERM PAYOFF

** Citigroup ("buy," PT: $265) views near-term margin pressure from delayed energy projects and cost headwinds tied to inflation and tariffs as temporary setbacks** Adds, HON's prudent pricing actions and productivity measures should support margin expansion potential

** J.P.Morgan ("neutral," PT: $222) says "concern remains that a refreshed focus on organic growth, which we expect to pay off somewhat in 2025, may not fall to the bottom line as expected, with a tradeoff that is balanced against margins"

** Oppenheimer ("perform") sees the strong profiles of three standalone companies as a value-creation opportunity, though the benefits may take time to show, probably by the second half of 2026

** Morningstar (fair value: $210) says "all the firm's segments possess an economic moat driven by intangible assets and switching costs, as HON grows, so does its installed base from which it can derive lucrative aftermarket revenue"** Adds, as HON's business segments share minimal overlap, a separation will let each business shine

(Reporting by Joel Jose in Bengaluru)

((joeljose@thomsonreuters.com))