Honeywell International's (HON) standout orders in Q2 and double-digit short-cycle growth across all segment support the company's H2 guidance with room for potential upside, RBC Capital Markets said in a Thursday note.

According to the analysts, the company delivered a clean beat and raise, boosted full-year guidance despite the Honeywell Aerospace (HONA) spinoff and hinted at room for H2 upside as management focuses on deleveraging through year-end.

Meanwhile, Honeywell's H2 organic growth ramp is likely supported by real-time demand momentum combined with long-cycle backlog conversion, implying that short-cycle macro is improving, RBC said.

The brokerage said it reiterated its outperform rating on the stock and boosted its price target to $298 per share from $272.

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