Honeywell’s Strategic Overhaul Gains Momentum

Honeywell International Inc. is entering February with significant positive momentum. Following a robust fiscal 2025 performance and fresh details regarding its strategic portfolio restructuring, market analysts are signaling further potential for the industrial conglomerate. Accelerated plans for its aerospace division spin-off and a multi-billion dollar valuation for its quantum computing venture are particularly capturing investor attention.

In light of recent operational progress, several financial institutions have revised their outlooks. Analysts at Deutsche Bank increased their price target to $273, while Evercore ISI set a target of $265. Both firms cited the company's operational resilience and the anticipated benefits of its ongoing portfolio transformation as key reasons for their bullish stance.

The equity recently closed at €188.62, trading approximately 14% below its 52-week high of €219.39 recorded in mid-January. However, with a 14-day Relative Strength Index (RSI) reading of 81.6, the stock is technically considered overbought in the short term, suggesting a potential period of consolidation may follow its recent rally.

Record Backlog Provides Unprecedented Visibility

Recent financial results confirmed that Honeywell exceeded market expectations for the fourth quarter of 2025. The company reported adjusted earnings per share of $2.59 and revenue surpassing $10 billion, delivering organic growth of eleven percent.

Should investors sell immediately? Or is it worth buying Honeywell?

A critical indicator for long-term planning is the company's order book. Honeywell concluded the year with a record backlog exceeding $37 billion. This substantial foundation allows management to issue an optimistic forecast for 2026, targeting revenue of up to $39.8 billion.

Accelerated Spin-Off and High-Value IPO Plans

A central driver of investor confidence is the firm's decisive portfolio realignment. The planned separation of the Aerospace business unit has now been brought forward to the third quarter of 2026, aiming to streamline the corporate structure more rapidly.

The underlying value of Honeywell's individual business segments is coming into sharper focus, notably through its subsidiary, Quantinuum. Reports indicate a confidential filing for an Initial Public Offering (IPO) has been submitted, with a potential valuation in the region of $20 billion. This figure represents a doubling of estimates from early 2025 and underscores Honeywell's ambitious positioning in the quantum computing sector.

The next major milestone is scheduled for Q3 2026, when the Aerospace division spin-off is set to be completed. Until then, the market will closely monitor developments surrounding the planned Quantinuum IPO, which will aid in reassessing the fair value of Honeywell's remaining core businesses.

• Recent Closing Price (Friday): €188.62
• 7-Day Change: +1.58%
• 30-Day Change: -3.84%
• Year-to-Date (YTD) Change: -3.71%
• 12-Month Change: -12.72%
• 52-Week High: €219.39 (16 January 2026)
• RSI (14-day): 81.6
• 200-Day Moving Average: €185.80