Honeywell Faces Uncommon Double Downgrade: Analyst Recommends Selling.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2025
0mins
Should l Buy HON?
Source: Barron's
- Stock Performance: Shares of Honeywell experienced a decline early Tuesday following a surprising double downgrade from BofA analyst Andrew Obin.
- Analyst Action: The downgrade is noted as rare, indicating a significant shift in the analyst's outlook on the company's performance.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to fall
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 243.590
Low
195.00
Averages
235.07
High
262.00
Current: 243.590
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Honeywell to Participate in Upcoming Investor Conferences
- Investor Conference Schedule: Honeywell will participate in the Bank of America Global Industrials Conference in London on March 17, 2026, where CEO Vimal Kapur will present from 8:00 to 8:40 a.m. GMT, showcasing the company's strategic direction in the global industrial sector.
- Executive Participation: On the same day, senior leaders from Honeywell and Honeywell Aerospace will attend the J.P. Morgan Industrials Conference in Washington, D.C., with CFO Mike Stepniak and Aerospace CEO Jim Currier presenting at 7:30 a.m. and 8:50 a.m. EDT respectively, emphasizing the company's leadership in aerospace and industrial automation.
- Real-Time Webcast: All presentations will be available via live audio webcasts on Honeywell's Investor Relations website, with related materials posted prior to the presentations and replays available for 30 days, ensuring investors have timely access to key information.
- Company Background: Honeywell is an integrated operating company serving a broad range of industries globally, leveraging the Honeywell Accelerator operating system and Honeywell Forge platform to provide innovative solutions in aerospace, building automation, and industrial automation, driving smarter, safer, and more sustainable global development.
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- China's Response: China's Foreign Ministry condemned Khamenei's killing as a grave violation of Iran's sovereignty and security, urging an immediate ceasefire, which indicates Beijing's dissatisfaction with U.S. actions and concern for regional stability.
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- Share Buyback Program: Middleby has reduced its share count by 6.4% through the first three quarters of 2025, utilizing $540 million from the sale of its residential kitchen segment, which is expected to further enhance shareholder returns and improve margins in the food processing segment.
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- Spin-Off Strategy: Major industrial players like Honeywell, DuPont, and Johnson & Johnson are executing spin-offs to unlock shareholder value, with Middleby planning a tax-free spin-off of its food processing segment in February 2025, which is expected to enhance its market competitiveness.
- Acquisition and Integration: Middleby has successfully increased the food processing segment's revenue from $3 million in 2005 to over $800 million by acquiring small equipment companies and integrating their operations, demonstrating strong growth potential in the commercial foodservice sector.
- Financial Performance: With annual revenue of $2.4 billion from its commercial foodservice segment, Middleby aims for the spun-off food processing segment to become a primary acquisition vehicle, although it must prove its profitability to achieve a higher market valuation despite currently generating less than $1 billion in revenue.
- Market Valuation: Preliminary estimates suggest the enterprise value of both segments is around $11.5 billion, and after accounting for net debt, the equity value is approximately $9.6 billion, highlighting a significant gap compared to the current market cap of $8.5 billion, with the spin-off aimed at closing this gap.
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- Financial Commitment Delivery: Analyst Nigel Coe noted that Honeywell is increasingly delivering on its financial commitments, with stronger organic sales and order KPIs relative to peers, which not only enhances the credibility of the new leadership team but also lays a foundation for future growth.
- Monetization Potential: Honeywell appears close to monetizing its Quantinuum investment, which Coe estimates could be worth $12 per share in equity value, while the company is also on a credible path to realizing a substantial portion of its $4.4 billion pension surplus, potentially adding another $7 per share in value.
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- Market Shift: A significant rotation is occurring in the stock market, moving away from companies potentially disrupted by AI.
- Focus on Tangibles: Investors are increasingly favoring companies that produce tangible goods, as reflected in the performance of the Dow Jones Industrial Average.
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Honeywell to Participate in Upcoming Investor Conferences
- Investor Conference Schedule: Honeywell will participate in the Bank of America Global Industrials Conference in London on March 17, 2026, where CEO Vimal Kapur will present from 8:00 to 8:40 a.m. GMT, showcasing the company's strategic direction in the global industrial sector.
- Executive Participation: On the same day, senior leaders from Honeywell and Honeywell Aerospace will attend the J.P. Morgan Industrials Conference in Washington, D.C., with CFO Mike Stepniak and Aerospace CEO Jim Currier presenting at 7:30 a.m. and 8:50 a.m. EDT respectively, emphasizing the company's leadership in aerospace and industrial automation.
- Real-Time Webcast: All presentations will be available via live audio webcasts on Honeywell's Investor Relations website, with related materials posted prior to the presentations and replays available for 30 days, ensuring investors have timely access to key information.
- Company Background: Honeywell is an integrated operating company serving a broad range of industries globally, leveraging the Honeywell Accelerator operating system and Honeywell Forge platform to provide innovative solutions in aerospace, building automation, and industrial automation, driving smarter, safer, and more sustainable global development.
See More
Trump's China Trip Faces Growing Uncertainty Amid Iran Strikes
- Iranian Leader Killed: The joint U.S.-Israel airstrike resulting in the death of Iran's Supreme Leader Khamenei complicates President Trump's upcoming trip to China, particularly against the backdrop of fragile U.S.-China relations, as analysts suggest.
- China's Response: China's Foreign Ministry condemned Khamenei's killing as a grave violation of Iran's sovereignty and security, urging an immediate ceasefire, which indicates Beijing's dissatisfaction with U.S. actions and concern for regional stability.
- Market Expectation Shift: According to Polymarket, expectations for Trump's visit to China by March 31 plummeted from 83.9% on February 21 to 42%, while the likelihood of a visit by April 30 remains high at 81%, reflecting increasing uncertainty in the market regarding Trump's travel plans.
- Business Environment Challenges: Prior to the Iran incident, many American CEOs were already hesitant to accompany Trump to China, and the current situation exacerbates challenges for business leaders in navigating plans for deals, potentially impacting future economic cooperation.
See More
Middleby Plans Spin-Off of Food Processing Segment
- Spin-Off Strategy: Middleby plans a tax-free spin-off of its food processing segment in February 2025, aiming to enhance shareholder value through independent management and capital structure, thereby positioning it as a primary acquisition vehicle.
- Financial Performance: The commercial foodservice segment boasts an EBITDA margin of 27%, while the food processing segment has grown from $3 million in revenue in 2005 to over $800 million, demonstrating strong growth potential but facing challenges with declining margins.
- Market Valuation: Based on conservative estimates, the enterprise value of both segments is around $11.5 billion, and after accounting for $1.9 billion in net debt, the equity is valued at approximately $9.6 billion, highlighting a significant gap compared to the current market cap of $8.5 billion.
- Share Buyback Program: Middleby has reduced its share count by 6.4% through the first three quarters of 2025, utilizing $540 million from the sale of its residential kitchen segment, which is expected to further enhance shareholder returns and improve margins in the food processing segment.
See More
Analysis of Industrial Giants' Spin-Off Strategies
- Spin-Off Strategy: Major industrial players like Honeywell, DuPont, and Johnson & Johnson are executing spin-offs to unlock shareholder value, with Middleby planning a tax-free spin-off of its food processing segment in February 2025, which is expected to enhance its market competitiveness.
- Acquisition and Integration: Middleby has successfully increased the food processing segment's revenue from $3 million in 2005 to over $800 million by acquiring small equipment companies and integrating their operations, demonstrating strong growth potential in the commercial foodservice sector.
- Financial Performance: With annual revenue of $2.4 billion from its commercial foodservice segment, Middleby aims for the spun-off food processing segment to become a primary acquisition vehicle, although it must prove its profitability to achieve a higher market valuation despite currently generating less than $1 billion in revenue.
- Market Valuation: Preliminary estimates suggest the enterprise value of both segments is around $11.5 billion, and after accounting for net debt, the equity value is approximately $9.6 billion, highlighting a significant gap compared to the current market cap of $8.5 billion, with the spin-off aimed at closing this gap.
See More
Honeywell Upgraded to Outperform with $293 Target Amid Aerospace Spin-Off
- Upgrade Announcement: Wolfe Research upgraded Honeywell's stock rating from Peer Perform to Outperform, raising the price target from $262 to $293, anticipating that the aerospace business separation will serve as a potential upside catalyst, reflecting market recognition of premium valuation multiples for aerospace peers.
- Financial Commitment Delivery: Analyst Nigel Coe noted that Honeywell is increasingly delivering on its financial commitments, with stronger organic sales and order KPIs relative to peers, which not only enhances the credibility of the new leadership team but also lays a foundation for future growth.
- Monetization Potential: Honeywell appears close to monetizing its Quantinuum investment, which Coe estimates could be worth $12 per share in equity value, while the company is also on a credible path to realizing a substantial portion of its $4.4 billion pension surplus, potentially adding another $7 per share in value.
- Optimistic Market Outlook: With the aerospace business spin-off approaching, Honeywell's shares rose 1.6% in trading, indicating market optimism regarding its future performance, and analysts believe this strategic move will further drive the company's long-term growth.
See More
The Dow Is Soaring This Year: What Sparked the Surge?
- Market Shift: A significant rotation is occurring in the stock market, moving away from companies potentially disrupted by AI.
- Focus on Tangibles: Investors are increasingly favoring companies that produce tangible goods, as reflected in the performance of the Dow Jones Industrial Average.
See More
