Honeywell International announced plans to split into three independent, publicly traded companies: Honeywell Automation, Honeywell Aerospace, and Advanced Materials. The company aims to enhance strategic focus and unlock shareholder value through this separation. The move has sparked mixed reactions from Wall Street, with some analysts maintaining a Hold rating while others upgraded their outlook to Buy. Despite the split, Honeywell's shares slipped more than 5% following the announcement, reflecting concerns about the company's soft 2025 outlook.
Analyst Ratings and Outlook
Analysts from various firms have provided mixed ratings for Honeywell International. Deutsche Bank upgraded its outlook from Hold to Buy, suggesting a potential upside of 19.30%. Barclays maintained a Buy rating, while RBC Capital and Morgan Stanley held a Hold rating. J.P. Morgan also maintained a Hold rating, setting a price target that reflects a neutral stance. Fitch Ratings placed Honeywell's ratings on Rating Watch Negative in response to the company's separation plans.
Q4 Earnings and Spin-Off Update
Honeywell International reported fourth-quarter 2024 adjusted earnings of $2.47 per share, surpassing the Zacks Consensus Estimate of $2.31. The earnings call highlighted strong organic sales growth and provided an update on the strategic separation plans. Despite the positive earnings, the company's shares dropped due to concerns about the soft 2025 outlook. Management emphasized the record backlog and the potential benefits of the split, aiming to boost shareholder returns.
Market Reaction and Future Outlook
The market's reaction to Honeywell's three-way split has been mixed, with some analysts expressing confidence in the company's future prospects while others remain cautious. The split is expected to take place by the second half of 2026, with the goal of enhancing strategic focus and unlocking shareholder value. Success will depend on execution and the ability to capitalize on strategic advantages.
* AI generated summary of articles
HON News
11-Feb-2025 6:06 AM CST - Business Insider Honeywell International (HON) Gets a Hold from J.P. Morgan J.P. Morgan analyst Stephen Tusa maintained a Hold rating on Honeywell International (HON - Research Report) on February 7 and set a price
10-Feb-2025 7:27 AM CST - Business Insider Honeywell International (HON) Gets a Hold from Morgan Stanley In a report released today, Christopher Snyder from Morgan Stanley maintained a Hold rating on Honeywell International (HON - Research Report),
7-Feb-2025 3:13 PM CST - Investing Honeywell's ratings under scrutiny following business separation announcement - Fitch Fitch Ratings has placed Honeywell International Inc (NASDAQ:HON).'s ratings, including its Long- and Short-Term Issuer Default Ratings (IDRs) of 'A' and 'F1', on Rating Watch Negative (RWN). This decision is in response to Honeywell's plan to separate its Aerospace Technologies (AT) and Automation businesses.
7-Feb-2025 6:05 AM CST - Fintel Deutsche Bank Upgrades Honeywell International (HON) Fintel reports that on February 7, 2025, Deutsche Bank upgraded their outlook for Honeywell International (NasdaqGS:HON) from Hold to Buy. Analyst Price Forecast Suggests 19.30% Upside As of January 28,
7-Feb-2025 5:52 AM CST - Business Insider Honeywell International (HON) Gets a Hold from RBC Capital In a report released yesterday, Deane Dray from RBC Capital maintained a Hold rating on Honeywell International (HON - Research Report), with a
7-Feb-2025 5:44 AM CST - Yahoo Finance Honeywell Shares Tumble as Split Plans and Soft 2025 Outlook Stir Concerns Honeywell International (HON, Financial) saw its shares slip more than 5% after revealing its three-way company split into Honeywell Automation, Honeywell Aerospace, and Advanced Materials on Thursday.
Honeywell International announced plans to split into three independent, publicly traded companies: Honeywell Automation, Honeywell Aerospace, and Advanced Materials. The company aims to enhance strategic focus and unlock shareholder value through this separation. The move has sparked mixed reactions from Wall Street, with some analysts maintaining a Hold rating while others upgraded their outlook to Buy. Despite the split, Honeywell's shares slipped more than 5% following the announcement, reflecting concerns about the company's soft 2025 outlook.
Analyst Ratings and Outlook
Analysts from various firms have provided mixed ratings for Honeywell International. Deutsche Bank upgraded its outlook from Hold to Buy, suggesting a potential upside of 19.30%. Barclays maintained a Buy rating, while RBC Capital and Morgan Stanley held a Hold rating. J.P. Morgan also maintained a Hold rating, setting a price target that reflects a neutral stance. Fitch Ratings placed Honeywell's ratings on Rating Watch Negative in response to the company's separation plans.
Q4 Earnings and Spin-Off Update
Honeywell International reported fourth-quarter 2024 adjusted earnings of $2.47 per share, surpassing the Zacks Consensus Estimate of $2.31. The earnings call highlighted strong organic sales growth and provided an update on the strategic separation plans. Despite the positive earnings, the company's shares dropped due to concerns about the soft 2025 outlook. Management emphasized the record backlog and the potential benefits of the split, aiming to boost shareholder returns.
Market Reaction and Future Outlook
The market's reaction to Honeywell's three-way split has been mixed, with some analysts expressing confidence in the company's future prospects while others remain cautious. The split is expected to take place by the second half of 2026, with the goal of enhancing strategic focus and unlocking shareholder value. Success will depend on execution and the ability to capitalize on strategic advantages.
* AI generated summary of articles
HON News
11-Feb-2025 6:06 AM CST - Business Insider Honeywell International (HON) Gets a Hold from J.P. Morgan J.P. Morgan analyst Stephen Tusa maintained a Hold rating on Honeywell International (HON - Research Report) on February 7 and set a price
10-Feb-2025 7:27 AM CST - Business Insider Honeywell International (HON) Gets a Hold from Morgan Stanley In a report released today, Christopher Snyder from Morgan Stanley maintained a Hold rating on Honeywell International (HON - Research Report),
7-Feb-2025 3:13 PM CST - Investing Honeywell's ratings under scrutiny following business separation announcement - Fitch Fitch Ratings has placed Honeywell International Inc (NASDAQ:HON).'s ratings, including its Long- and Short-Term Issuer Default Ratings (IDRs) of 'A' and 'F1', on Rating Watch Negative (RWN). This decision is in response to Honeywell's plan to separate its Aerospace Technologies (AT) and Automation businesses.
7-Feb-2025 6:05 AM CST - Fintel Deutsche Bank Upgrades Honeywell International (HON) Fintel reports that on February 7, 2025, Deutsche Bank upgraded their outlook for Honeywell International (NasdaqGS:HON) from Hold to Buy. Analyst Price Forecast Suggests 19.30% Upside As of January 28,
7-Feb-2025 5:52 AM CST - Business Insider Honeywell International (HON) Gets a Hold from RBC Capital In a report released yesterday, Deane Dray from RBC Capital maintained a Hold rating on Honeywell International (HON - Research Report), with a
7-Feb-2025 5:44 AM CST - Yahoo Finance Honeywell Shares Tumble as Split Plans and Soft 2025 Outlook Stir Concerns Honeywell International (HON, Financial) saw its shares slip more than 5% after revealing its three-way company split into Honeywell Automation, Honeywell Aerospace, and Advanced Materials on Thursday.