Bank of America has moved Honeywell (NASDAQ:HON) from Neutral to Buy, lifting its price target to $250 from $210—a reflection of stabilizing earnings revisions and a strong Q1 beat.
Key Takeaways from the Upgrade
-
Q1 Beat: Adjusted EPS of $2.51 topped expectations, and management raised full-year guidance.
-
Earnings Stability: BofA now sees 2025 EPS at $10.44 (up from $10.27) and 2026 at $11.54, modestly above consensus.
-
Defensive Mix: Honeywell’s portfolio—spanning Aerospace, Building Solutions and Process Solutions—should cushion results in softer economic conditions.
Valuation Gap & Peer Comparison
Analysts led by Andrew Obin note that Honeywell has underperformed industrial peers over the past two years, trading at a larger discount on terminal-growth multiples. By applying a 17× 2026 EV/EBITDA multiple—below peers at 18×—BofA sees room for valuation convergence as earnings visibility improves.
Monitoring Analyst Actions
To track Honeywell’s evolving analyst ratings—upgrades, downgrades, and price-target changes—the Up-Down Grades by Company API provides a live feed of brokerage recommendation shifts, ensuring you catch any further sentiment swings:
View Honeywell’s analyst rating changes
What to Watch Next
-
Earnings Revisions: Will consensus continue adjusting higher after Q1?
-
Margin Trends: Watch segment margins in Aerospace and Building Solutions for signs of cost pressure or relief.
-
Corporate Actions: Any M&A or share-repurchase announcements could further support the upgrade thesis.
By combining BofA’s constructive outlook with live analyst-grade data, you can gauge whether Honeywell’s defensive positioning and improving fundamentals warrant a lasting re-rating.
