Morgan Stanley Issues Timely Opinion on Honeywell Stock

Morgan Stanley analysts issued a timely opinion on Honeywell International (HON:NYSE) after the aerospace unit (HONA) officially became an independent publicly traded company on June 29, 2026. The new rating comes at a critical time for the company, which now focuses on its remaining industrial businesses.

Rating Change

Morgan Stanley analysts upgraded Honeywell from "Equal Weight" to "Overweight" and raised the price target to $280 per share from $250. The change reflects confidence in the company's post-spin strategy.

Analyst Rationale

Analysts believe the spin-off allows Honeywell to focus on its core automation and industrial solutions businesses, potentially improving margins and accelerating growth. They also note that the current valuation does not fully reflect future growth potential.

Context

Since the spin-off announcement in 2025, Honeywell's stock has risen about 15%, while the S&P 500 declined 2% over the same period. Other analysts, such as Goldman Sachs, maintain a "Buy" rating with a $275 price target.

What to Make of It

Morgan Stanley's upgrade reflects a positive view of Honeywell's post-spin strategy, but investors should monitor the company's performance over the next two quarters to assess the strategy's success.