Honeywell stock rating upgraded by RBC Capital on planned separation

Published 27/10/2025, 08:22
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Investing.com - RBC Capital upgraded Honeywell International (NASDAQ:HON) from Sector Perform to Outperform on Monday, while raising its price target to $253.00 from $235.00. The industrial conglomerate, currently valued at $137 billion, has demonstrated strong financial health with a profit score of 4.02 out of 5 according to InvestingPro analysis.

The upgrade follows what RBC described as a "solid" third quarter for 2025, which the firm believes marks the beginning of a "catalyst-rich phase" ahead of Honeywell’s planned separation of its Aerospace and Automation businesses in the second half of 2026. The company has maintained a strong track record of shareholder returns, having raised its dividend for 15 consecutive years with a current yield of 2.35%.

RBC cited growing momentum across Honeywell’s core segments, improved visibility on execution, and a credible roadmap toward value unlock as key factors supporting the rating change.

The firm’s sum-of-the-parts valuation suggests "attractive upside" potential for Honeywell shares, with management executing well on its strategic initiatives.

RBC expects investor focus to shift toward the "structural upside" in the two standalone franchises that will emerge from the separation, both positioned for sustainable growth and margin expansion as perceptions of "deal purgatory" fade.

In other recent news, Honeywell International Inc. reported robust third-quarter results for 2025, surpassing both earnings and revenue expectations. The company achieved an adjusted earnings per share (EPS) of $2.82, which exceeded the anticipated $2.56. Additionally, Honeywell generated $10.4 billion in revenue, surpassing the projected $10.13 billion. These results are part of the latest developments concerning the company. While the earnings exceeded forecasts, no further updates on mergers or acquisitions were reported. Analyst opinions and stock upgrades or downgrades were not mentioned in the recent developments. Honeywell’s financial performance continues to be closely monitored by investors and analysts alike.

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