Honeywell: Recasting Model Post-HONA Spin and Reverse Stock Split; $263 PT
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Deutsche Bank maintains a Buy rating on Honeywell, raising the price target from $250 to $263 following the completion of its aerospace business spin-off. On June 30, 2026, Honeywell completed the separation of its aerospace unit, HONA, alongside a one-for-two reverse stock split, reducing its share count to approximately 319 million shares. Deutsche Bank has adjusted its financial models to reflect the new corporate structure, incorporating the Johnson Matthey catalyst acquisition expected to close in July and the divestiture of the Personal Safety and Workwear businesses in October.
The revised model forecasts 2026 adjusted earnings per share of $8.30, positioning the company at the high end of its pro forma guidance range. Looking ahead, Deutsche Bank projects earnings per share to exceed $12 by 2029, reflecting a low-teens compound annual growth rate. Key growth drivers include the reduction of legacy aerospace costs, debt repayment, and sustained mid-single-digit organic growth. Applying a 25 times forward price-to-earnings multiple, which remains at a discount to the industry median of 26 times, the firm derives a $263 target. This implies approximately 15% upside potential from the recent stock price of $232.21.
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