CNBC Investing Club Upgrades Honeywell to 1, Plans 30-Share Buy Before June 29 Aerospace Spin-off
Updated
Updated · CNBC · Jun 11
CNBC Investing Club Upgrades Honeywell to 1, Plans 30-Share Buy Before June 29 Aerospace Spin-off
1 articles · Updated · CNBC · Jun 11
Summary
Honeywell was raised back to a 1 rating, and the club said it aims to repurchase at least 30 shares sold in late May around $231, with buying possible Monday at the earliest.
June 29 is the key catalyst: Honeywell will separate its Aerospace unit in a 1-for-2 share spin-off, ending what the club called "spin purgatory" and potentially unlocking a higher valuation.
19.5 times 2026 adjusted EPS is the current combined-company multiple, which the club argues is too low given aerospace peer RTX trades near 26 times and Emerson Electric near 20.6 times.
Management's investor-day targets for the Technologies business included 4% to 6% organic sales growth, steady annual margin expansion and about $6 in EPS, or more than 10% annual adjusted EPS growth.
The call comes after years of portfolio reshaping, with Honeywell shedding slower-growth businesses, closing six acquisitions since 2023 and pursuing one more deal to improve growth and earnings quality.