Honeywell Sells Business to Reshape Portfolio Amid Market Uncertainty
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2026
0mins
Source: CNBC
- Honeywell Business Sale: Honeywell sells its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash, a strategic move to divest cyclical, slower-growing, lower-margin operations, thereby enhancing the overall quality of its portfolio.
- Market Reaction Stable: Despite a 5% rise in oil prices due to uncertainty over commercial shipping traffic in the Strait of Hormuz, the market's decline was less severe than feared, as Treasury yields remained relatively unchanged, indicating a stable investor sentiment.
- Eli Lilly Acquisition Moves: Eli Lilly acquires clinical-stage biotech firm Kelonia Therapeutics for $3.25 billion in cash, aiming to bolster its cancer treatment pipeline, with the deal potentially worth up to $7 billion, showcasing the company's aggressive expansion strategy in oncology.
- Active IPO Market: In spite of uncertainties from the Iran conflict, Jersey Mike's confidentially files for an IPO with a valuation of approximately $8 billion, reflecting ongoing interest in new public offerings and further driving growth in investment banking activities.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy HON?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 221.750
Low
195.00
Averages
235.07
High
262.00
Current: 221.750
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.
Dow Jones Welcomes Alphabet Amid Strategic Shifts
- Dow Jones Changes: On June 29, Alphabet replaced Verizon in the Dow Jones Industrial Average, a strategic move aimed at enhancing the index's exposure to advertising, cloud computing, and AI, marking a significant recognition for Alphabet in a historically traditional index.
- Honeywell's Restructuring: On the same day, Honeywell completed the spinoff of its aerospace division, transforming into a focused automation company; despite the uncertainties that come with spinoffs, it maintained its dividend, appealing to income-seeking investors.
- Amgen's Growth Potential: Amgen announced a 6% increase in its dividend for 2026 while running late-stage trials for its obesity treatment, which could open substantial market opportunities, attracting income investors with its combination of stable dividends and growth potential.
- Chevron's Growth Engine: Chevron raised its dividend by 4% for 2026 and acquired a 30% stake in Guyana's Stabroek Block through the Hess acquisition, ensuring a competitive edge in low-cost growth, although oil price fluctuations remain a risk factor.
See More
Honeywell Completes Spin-off into Three Independent Companies
- Spin-off Completed: On June 29, Honeywell finalized its multistage portfolio transformation into three independent companies, marking a significant strategic shift aimed at enhancing operational focus and shareholder value.
- Shareholder Benefits: The spin-off provides one share of Honeywell Aerospace for every two shares of Honeywell Technologies held, with cash paid for fractional shares, thereby optimizing capital structure and enhancing shareholder returns.
- Business Focus: The new Honeywell Technologies is concentrated on industrial automation, with its building and industrial automation segments achieving an 11% year-over-year sales growth in Q1, demonstrating the company's competitive edge in rapidly growing markets.
- Future Outlook: The remaining company is projected to generate between $19.9 billion and $20.2 billion in revenue by 2026, with management targeting 4% to 6% organic growth, indicating a strong potential for robust earnings growth in the coming years.
See More
Honeywell Technologies Shifts Focus to High-Growth Areas
- Completion of Business Restructuring: On June 29, Honeywell completed its multistage portfolio transformation into three independent companies, allowing Honeywell Technologies to focus on industrial automation, which is expected to enhance its competitive position in the market.
- Optimistic Financial Outlook: Honeywell Technologies is projected to generate between $19.9 billion and $20.2 billion in revenue by 2026, up from $17 billion in 2025, with management targeting 4% to 6% organic growth, indicating strong business expansion potential.
- Market Reaction Volatility: Despite a drop in Honeywell Technologies' stock price from $247.02 on June 25 to around $221.72 post-split, analysts have set an average price target of $474.75, suggesting a potential upside of 114%, reflecting confidence in its long-term value.
- Enhanced ESG Appeal: By divesting its aerospace division, Honeywell Technologies has reduced its direct exposure to the defense industry, which is expected to attract more investments from ESG-sensitive funds, further increasing its market attractiveness.
See More
10 Most Undervalued Dow Stocks to Buy According to Wall Street Analysts
- Price Target Increase: Deutsche Bank raised Honeywell International Inc. (HON)'s price target from $250 to $263 while maintaining a Buy rating, reflecting a revised valuation model post-spin-off and reverse stock split, indicating market confidence in its future growth.
- Solar Project Partnership: Honeywell International signed an Operations and Maintenance Services Agreement with its subsidiary Abundant Solar Power for a 21 MW portfolio, ensuring long-term management and operational responsibilities, which strengthens its position in the renewable energy sector.
- Asset Transfer Impact: Following Honeywell's planned Aerospace spinoff on June 29, the solar projects were transferred to Honeywell Aerospace, optimizing resource allocation and enhancing overall business efficiency in the wake of corporate restructuring.
- Industry Outlook Analysis: While Honeywell is viewed as a potential investment, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, reflecting a shift in market preferences towards different technology sectors.
See More
Dow Hits All-Time High as Honeywell Shares Surge Post Coverage Initiation
- Dow Jones Record High: On Thursday, the Dow Jones reached an all-time high as investors absorbed June's weaker-than-expected non-farm payrolls report, indicating a significant slowdown in U.S. job creation, which supports the Federal Reserve's potential rate cuts that could stimulate economic growth.
- Honeywell Stock Surge: Honeywell Aerospace shares rose over 4% after BMO initiated coverage with a buy rating and a $276 price target; Jim Cramer expressed willingness to buy more at around $233, viewing it as an inexpensive way to invest in the booming travel sector, indicating strong future demand.
- Linde Investment Focus: Jim advised investors to focus on Linde, which saw over a 2% increase on Thursday; he noted that despite the industrial sector not being a favorite, Linde benefits from long-term trends like AI and green energy, positioning it as a
See More
CrowdStrike Shares Plummet 74.9% Today
- Stock Plunge: CrowdStrike Holdings' shares are down 74.9% today, making it the worst performer in the Nasdaq 100, reflecting extreme pessimism about its future growth prospects in the cybersecurity sector.
- Poor Year-to-Date Performance: Year-to-date, CrowdStrike has declined approximately 58.6%, indicating significant challenges the company faces in a competitive market, which may affect its long-term investment appeal.
- Market Movements: In today's trading, KLAC is down 3.4%, while Honeywell International is up 7.5%, highlighting varied market reactions to different companies and exacerbating investor concerns regarding CrowdStrike.
- Investor Sentiment: The drastic drop in CrowdStrike's stock not only undermines shareholder confidence but may also prompt analysts to reassess its future profitability and market positioning, increasing pressure on the company.
See More
Dow Jones Welcomes Alphabet Amid Strategic Shifts
- Dow Jones Changes: On June 29, Alphabet replaced Verizon in the Dow Jones Industrial Average, a strategic move aimed at enhancing the index's exposure to advertising, cloud computing, and AI, marking a significant recognition for Alphabet in a historically traditional index.
- Honeywell's Restructuring: On the same day, Honeywell completed the spinoff of its aerospace division, transforming into a focused automation company; despite the uncertainties that come with spinoffs, it maintained its dividend, appealing to income-seeking investors.
- Amgen's Growth Potential: Amgen announced a 6% increase in its dividend for 2026 while running late-stage trials for its obesity treatment, which could open substantial market opportunities, attracting income investors with its combination of stable dividends and growth potential.
- Chevron's Growth Engine: Chevron raised its dividend by 4% for 2026 and acquired a 30% stake in Guyana's Stabroek Block through the Hess acquisition, ensuring a competitive edge in low-cost growth, although oil price fluctuations remain a risk factor.
See More
Honeywell Completes Spin-off into Three Independent Companies
- Spin-off Completed: On June 29, Honeywell finalized its multistage portfolio transformation into three independent companies, marking a significant strategic shift aimed at enhancing operational focus and shareholder value.
- Shareholder Benefits: The spin-off provides one share of Honeywell Aerospace for every two shares of Honeywell Technologies held, with cash paid for fractional shares, thereby optimizing capital structure and enhancing shareholder returns.
- Business Focus: The new Honeywell Technologies is concentrated on industrial automation, with its building and industrial automation segments achieving an 11% year-over-year sales growth in Q1, demonstrating the company's competitive edge in rapidly growing markets.
- Future Outlook: The remaining company is projected to generate between $19.9 billion and $20.2 billion in revenue by 2026, with management targeting 4% to 6% organic growth, indicating a strong potential for robust earnings growth in the coming years.
See More
Honeywell Technologies Shifts Focus to High-Growth Areas
- Completion of Business Restructuring: On June 29, Honeywell completed its multistage portfolio transformation into three independent companies, allowing Honeywell Technologies to focus on industrial automation, which is expected to enhance its competitive position in the market.
- Optimistic Financial Outlook: Honeywell Technologies is projected to generate between $19.9 billion and $20.2 billion in revenue by 2026, up from $17 billion in 2025, with management targeting 4% to 6% organic growth, indicating strong business expansion potential.
- Market Reaction Volatility: Despite a drop in Honeywell Technologies' stock price from $247.02 on June 25 to around $221.72 post-split, analysts have set an average price target of $474.75, suggesting a potential upside of 114%, reflecting confidence in its long-term value.
- Enhanced ESG Appeal: By divesting its aerospace division, Honeywell Technologies has reduced its direct exposure to the defense industry, which is expected to attract more investments from ESG-sensitive funds, further increasing its market attractiveness.
See More
10 Most Undervalued Dow Stocks to Buy According to Wall Street Analysts
- Price Target Increase: Deutsche Bank raised Honeywell International Inc. (HON)'s price target from $250 to $263 while maintaining a Buy rating, reflecting a revised valuation model post-spin-off and reverse stock split, indicating market confidence in its future growth.
- Solar Project Partnership: Honeywell International signed an Operations and Maintenance Services Agreement with its subsidiary Abundant Solar Power for a 21 MW portfolio, ensuring long-term management and operational responsibilities, which strengthens its position in the renewable energy sector.
- Asset Transfer Impact: Following Honeywell's planned Aerospace spinoff on June 29, the solar projects were transferred to Honeywell Aerospace, optimizing resource allocation and enhancing overall business efficiency in the wake of corporate restructuring.
- Industry Outlook Analysis: While Honeywell is viewed as a potential investment, analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk, reflecting a shift in market preferences towards different technology sectors.
See More
Dow Hits All-Time High as Honeywell Shares Surge Post Coverage Initiation
- Dow Jones Record High: On Thursday, the Dow Jones reached an all-time high as investors absorbed June's weaker-than-expected non-farm payrolls report, indicating a significant slowdown in U.S. job creation, which supports the Federal Reserve's potential rate cuts that could stimulate economic growth.
- Honeywell Stock Surge: Honeywell Aerospace shares rose over 4% after BMO initiated coverage with a buy rating and a $276 price target; Jim Cramer expressed willingness to buy more at around $233, viewing it as an inexpensive way to invest in the booming travel sector, indicating strong future demand.
- Linde Investment Focus: Jim advised investors to focus on Linde, which saw over a 2% increase on Thursday; he noted that despite the industrial sector not being a favorite, Linde benefits from long-term trends like AI and green energy, positioning it as a
See More
CrowdStrike Shares Plummet 74.9% Today
- Stock Plunge: CrowdStrike Holdings' shares are down 74.9% today, making it the worst performer in the Nasdaq 100, reflecting extreme pessimism about its future growth prospects in the cybersecurity sector.
- Poor Year-to-Date Performance: Year-to-date, CrowdStrike has declined approximately 58.6%, indicating significant challenges the company faces in a competitive market, which may affect its long-term investment appeal.
- Market Movements: In today's trading, KLAC is down 3.4%, while Honeywell International is up 7.5%, highlighting varied market reactions to different companies and exacerbating investor concerns regarding CrowdStrike.
- Investor Sentiment: The drastic drop in CrowdStrike's stock not only undermines shareholder confidence but may also prompt analysts to reassess its future profitability and market positioning, increasing pressure on the company.
See More
