Bank of America Analyst Significantly Lowers Honeywell Stock Forecast: Here's the Reason Behind It
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2025
0mins
Source: TipRanks
Honeywell Stock Downgrade: Honeywell's stock fell 1.2% after Bank of America analyst Andrew Obin downgraded it from "Buy" to "Sell," significantly lowering the price target from $265 to $205 due to disappointing performance from its spun-off company, Solstice Advanced Materials.
Challenges Post-Separation: The separation of Honeywell's refrigerants and materials business into Solstice has not met investor expectations, with Solstice shares declining from over $50 to $41.58, indicating that the anticipated value creation is not materializing.
Limited Growth Outlook: Obin forecasts limited earnings growth for Honeywell's core business through 2026, which diminishes the appeal of the stock despite its relatively low valuation compared to competitors like GE Aerospace and Rockwell Automation.
Analyst Consensus: Despite the downgrade, the consensus among 13 analysts remains a "Moderate Buy," with eight recommending a Buy and an average 12-month price target of $247.58, suggesting a potential upside of over 28% from the current price.
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Analyst Views on HON
Wall Street analysts forecast HON stock price to rise
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 233.550
Low
195.00
Averages
235.07
High
262.00
Current: 233.550
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.
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See More
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- Strategic Restructuring: Following the divestiture of its personal protective equipment business in 2024, Honeywell plans to split its operations into separate aerospace, automation, and advanced materials units, reflecting its ongoing focus on business optimization.
- Market Impact: The divested productivity solutions unit, which provides mobile computers, barcode scanners, and printing solutions for the warehouse and logistics market, is anticipated to contribute double-digit accretion to Brady's adjusted profit within the first year post-transaction.
- Industry Consolidation: Brady, which specializes in labels, signs, safety devices, and printing systems for industries such as electronics, manufacturing, and aerospace, will enhance its competitive position in relevant markets through this acquisition, further driving company growth.
See More
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- Strategic Transformation Progress: This sale is part of Honeywell's strategic review initiated in July 2025, marking a significant step towards completing its multi-year portfolio transformation ahead of the planned spin-off of its Aerospace business in Q3 2026, thereby accelerating value creation.
- Market Impact Analysis: With 2025 revenue of approximately $1.1 billion, PSS is a leading provider of mobile computing and barcode scanning solutions, and its divestiture will enhance Brady's capabilities in industrial identification and safety, expanding its service offerings in the warehouse and logistics sectors.
- Financial Advisory Support: Honeywell is being advised by Centerview Partners for this transaction, with legal support from firms such as Kirkland & Ellis LLP, ensuring the smooth execution of the deal while meeting regulatory requirements.
See More
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