Baird Lifts Honeywell (HON) to $240, Highlights Portfolio Transformation Progress

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On January 30, Honeywell International Inc. (NASDAQ:HON) saw Baird analyst Peter Arment raise the firm’s price target to $240 from $207 while maintaining a Neutral rating following fourth-quarter results. The analyst updated financial projections to reflect improved operating performance and confirmed that the planned Aerospace separation remains on schedule, reinforcing visibility around the company’s portfolio transformation strategy.

One day earlier, Honeywell International Inc. (NASDAQ:HON) reported fourth-quarter results demonstrating robust operational momentum. Fourth-quarter sales increased 11% organically, or 6% excluding the impact of the 2024 Bombardier agreement, while full-year 2025 sales rose 7% organically, or 6% excluding Bombardier, exceeding the high end of initial full-year guidance by approximately two percentage points. Fourth-quarter adjusted earnings per share were $2.90, representing 17% year-over-year growth, or a 3% decline excluding Bombardier, while full-year adjusted EPS reached $9.78, up 12% year over year, or 7% excluding Bombardier.

During the quarter, Honeywell International Inc. (NASDAQ:HON) returned $900 million to shareholders through dividends and share repurchases, repaid $2.3 billion of debt in Q4 and $3.8 billion for the full year, repurchased $3.8 billion of stock representing 18 million shares in 2025, funded $2.2 billion of acquisitions, and invested $1.0 billion in capital expenditures. The 2026 capital allocation plan prioritizes additional debt reduction ahead of the Aerospace separation.

For full-year 2026, Honeywell International Inc. (NASDAQ:HON) guided sales of $38.8–$39.8 billion, implying organic growth of 3%–6%, adjusted EPS of $10.35–$10.65, reflecting 6%–9% growth, and free cash flow of $5.3–$5.6 billion, representing 4%–10% growth, supported by continued margin expansion and pricing of approximately 3% or higher. The combination of accelerating organic growth, strong free cash flow generation, disciplined capital deployment, and portfolio simplification through the Aerospace spinoff strengthens the investment case by enhancing earnings quality and improving balance sheet flexibility.

Honeywell International Inc. (NASDAQ:HON) is a diversified multinational conglomerate that develops technologies addressing complex challenges across aerospace, building automation, industrial automation, and energy transition markets.

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