RBC Capital Markets sees a “catalyst-rich” path forward for Honeywell International. The bank upgraded the conglomerate’s stock to an outperform rating from a sector performance rating. Analyst Dean Dray also raised his price target to $253 per share from $235, suggesting a 17% upside potential. Honeywell stock has fallen 4% this year. HON YTD Mountain HON YTD Charts Dray’s upgrade comes after Honeywell reported quarterly results last week that beat analysts’ expectations. The company had adjusted earnings per share of $2.82 on revenue of $10.41 billion, compared to analyst estimates compiled by LSEG of earnings of $2.57 per share and revenue of $10.14 billion. The analyst praised the strong quarter, highlighting it as the start of a period rich in catalysts for Honeywell’s planned separation of its aerospace division in the second half of 2026. Dray also pointed to past industry breakups, which he said ultimately benefited both companies. The analyst added that Honeywell’s current valuation could provide an attractive entry point for a separation. “When we look at examples of ‘drive to break up’ in similar industries, we’ve seen Honeywell’s peers like GE, United Technologies, Danaher and Ingersoll Rand unlock value through portfolio simplification,” he said. “Although the planned separation of Aviation and Automation in the second half of 2026 will likely take some time, Honeywell’s improving financial position indicates strong momentum and execution toward separation, which we believe provides favorable risk/reward.” Dray also highlighted Honeywell’s strong and durable core business, which should allow the market to become more focused as headwinds subside. “We see increased momentum across core segments, improved visibility of execution, and a credible roadmap to unlocking value,” the analysts wrote. “As management continues to perform well, separation milestones approach, and the perception of ‘trading purgatory’ fades, we believe investors’ focus will shift to the structural upside embedded in two strong independent franchises aimed at sustainable growth and profit expansion.” (Learn the best 2026 strategies from inside the NYSE with Josh Brown and others on CNBC PRO Live. Tickets and information here.)
