Honeywell Faces Uncommon Double Downgrade: Analyst Recommends Selling.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 18 2025
0mins
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 rise
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 223.800
Low
195.00
Averages
235.07
High
262.00
Current: 223.800
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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- Project Completion Timeline: The contract is expected to be completed by May 19, 2029, indicating Honeywell's commitment to long-term projects and its ability to provide ongoing service and support to its clients.
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- Dow Component Changes: The Dow Jones Industrial Average replaced ExxonMobil with Salesforce in 2020 and Walgreens with Amazon in 2024, reflecting a shift towards tech stocks that enhances the index's representation of the modern market.
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- Alphabet's Market Position: With a market cap of $4.81 trillion, Alphabet is nearing the $5 trillion club, and despite a more than threefold increase in stock price over the past year, it remains a strong long-term investment due to its leadership across various sectors.
- Honeywell's Underperformance: Since joining the Dow in 2020, Honeywell has underperformed relative to the S&P 500 and the Dow, with plans to spin off its businesses in 2025 and 2026, potentially paving the way for Alphabet's inclusion and optimizing the index's composition.
See More
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- Potential Inclusion of Alphabet: Alphabet's stock split in 2022 positions it favorably to potentially replace Honeywell in 2024, enhancing its representation in the Dow, particularly given its leadership in AI, cloud computing, and self-driving technologies, which could drive its market cap closer to $5 trillion.
- Integration of AI Technologies: Despite Alphabet's stock tripling in price over the past year, its successful integration of AI features into Google Search and the expansion of its Gemini large language model demonstrate its robust capabilities in technological innovation and market competition.
- Future Investment Value: With a forward P/E ratio of 27.8, Alphabet is still considered a good long-term investment, especially due to its unique advantages in free cash flow generation and investments across the AI value chain, positioning it for strong growth potential in the future.
See More
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- Market Recovery: The S&P 500 index rebounded in afternoon trading on Thursday after earlier losses, primarily influenced by oil prices dropping below $100 per barrel, indicating a cautious optimism regarding economic prospects.
- Consumer Confidence Divide: Walmart's earnings met expectations but warned that high fuel prices are pressuring lower-income consumers, with their fuel purchases falling below 10 gallons for the first time, reflecting a growing trend of economic inequality.
- Quantum Computing Investment: The Trump administration announced $2 billion in grants to support the quantum computing sector, resulting in stock price increases of 8% for IBM and 11% for GlobalFoundries, highlighting the government's commitment to emerging technology fields.
- IPO Prospects: Quantinuum plans to conduct an IPO expected to raise over $1.5 billion, valuing the company between $15 billion and $20 billion, with Honeywell, its majority stakeholder, potentially benefiting, although Jim Cramer expressed caution regarding the stock's recent price surge.
See More
Honeywell's Quantum Unit Secures R&D Funding from U.S. Government
- R&D Funding Support: Honeywell's quantum computing unit, Quantinuum, signed a letter of intent with the U.S. Department of Commerce to secure R&D funding aimed at addressing technology bottlenecks in fault-tolerant trapped-ion quantum computers, which is expected to enhance its technological advancements and market competitiveness.
- Supply Chain Collaboration: Quantinuum plans to partner with U.S.-based semiconductor manufacturing and photonics technology suppliers to strengthen the U.S. semiconductor supply chain and manufacturing capabilities, thereby enhancing national technological autonomy and innovation capacity.
- Commercial Roadmap Enhancement: Quantinuum has established partnerships with GlobalFoundries and Monarch Quantum to further advance its commercial development plans, which are anticipated to accelerate the commercialization of quantum computing technologies.
- IPO Preparation Progress: Earlier this month, Honeywell announced that Quantinuum submitted an S-1 registration statement to the SEC in preparation for a proposed initial public offering in the U.S., indicating its strategic positioning and market potential in the quantum computing sector.
See More
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- Oil and Treasury Yields: U.S. benchmark WTI crude prices have surged back above $100 per barrel, with the 10-year Treasury yield hovering around 4.6%, leading to lower stock futures this morning, reflecting market concerns over inflation and rising interest rates that could dampen investor confidence.
- Nvidia Buyback Plan: Nvidia has added $80 billion to its stock buyback authorization, on top of the existing $39 billion, and increased its annual dividend payout from $0.04 to $1, indicating a strong commitment to shareholder returns, although the market reaction has been muted, this could bolster investor confidence in the long run.
- Walmart's Earnings Outlook: Walmart is feeling the pinch from high gas prices, resulting in a disappointing earnings outlook despite matching earnings and beating revenue expectations in Q1, with shares down approximately 2.5%, reflecting cautious sentiment regarding future growth prospects.
- Inflation Rollback: Kroger CEO Greg Foran announced plans for the largest price cuts in years to stay competitive, although shares fell about 4% following the news, this strategic move could enhance market share and customer loyalty over time.
See More
Honeywell Secures $249M Contract for CH-47 Engine Maintenance
- Significant Contract Value: Honeywell International has secured a ~$249 million firm-fixed-price contract to support the maintenance and overhaul of the CH-47 Chinook T-55 engine, aimed at ensuring mission readiness and avoiding maintenance gaps.
- Project Completion Timeline: The contract is expected to be completed by May 19, 2029, indicating Honeywell's commitment to long-term projects and its ability to provide ongoing service and support to its clients.
- Funding and Work Locations: The work locations and funding will be finalized with each order, allowing Honeywell to adjust resource allocation based on specific customer needs, enhancing operational flexibility.
- Military Collaboration Opportunity: This award was issued by the Army Contracting Command, further solidifying Honeywell's partnership with the military and potentially paving the way for future contract opportunities.
See More
