BUZZ-Jefferies bullish on Honeywell ahead of aerospace spin-off, raises PT

Reuters
2025/06/11
BUZZ-Jefferies bullish on Honeywell ahead of aerospace spin-off, raises PT

** Jefferies raises HoneywellHON.O price target to $240 from $235, an upside of 6.1% to the stock's last close

** Brokerage expects co to complete spin-off of aerospace technology business by second half of 2026

** Says aerospace technology business is expected to be the primary growth engine for the co in 2025 and beyond

** Adds that aerospace technology growth primarily driven by ramped up original equipment cycle, ongoing resilience in aftermarket and steady gains in defense

** Jefferies notes co's commercial original equipment performance had been weak due to lower production at Boeing BA.N and Airbus AIR.PA, along with delays in ramping up the 737 MAX after its early 2024 grounding and a strike in late 2024, but its' now starting to recover driven by rebounding aircraft deliveries

** However, cuts 2025 adj EPS forecast to 10.30 from 10.35

** 15 of 27 brokerages rate the stock "buy" or higher, 12 "hold"; their median PT is $240- data compiled by LSEG

** As of last close, stock had risen marginally 0.2% YTD

(Reporting by Apratim Sarkar)

((Apratim.Sarkar@thomsonreuters.com))

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