Goldman Sachs Raises Honeywell (HON) Price Target to $276

Goldman Sachs analyst Joe Ritchie raised his price target on Honeywell International Inc. (NASDAQ:HON) to $276 from $258, maintaining a Buy rating, according to a research note dated June 3.

Rating Change

• Previous Rating: Buy with a $258 price target.
• Current Rating: Buy with a $276 price target (approximately 7% upside from the prior close).

Analyst's Rationale

Ritchie believes the planned Aerospace spin-off is a key catalyst for the stock. The separation is expected to unlock hidden value and allow Honeywell to focus on its core businesses, potentially boosting dividends and growth.

Context

The recommendation comes as Honeywell prepares to spin off its Aerospace division, which accounts for a significant portion of revenue. Other analysts have mixed views, but the overall sentiment is positive toward the restructuring. HON shares trade near $258, with a dividend yield above 2%.

Conclusion

The price target hike reflects analyst confidence in Honeywell's strategy, but investors should monitor the spin-off progress and regulatory approvals. This is not a buy or sell recommendation.