RBC Capital Markets sees a “catalyst-rich” path ahead for Honeywell International. The bank upgraded shares of the industrial conglomerate to an outperform rating from sector perform. Analyst Deane Dray also lifted his price target to $253 per share from $235, implying an upside of 17% from here. Shares of Honeywell have slipped 4% this year. HON YTD mountain HON YTD chart Dray’s upgrade comes after Honeywell reported quarterly results last week that exceeded analysts’ expectations. The company earned an adjusted $2.82 per share on revenue of $10.41 billion, while analysts polled by LSEG had expected earnings of $2.57 per share and $10.14 billion in revenue. The analyst applauded this solid quarter and highlighted that it marks the start of a catalyst-rich period ahead of Honeywell’s planned separation of its aerospace segment in the second half of 2026. Dray also pointed to previous industrial breakups, which he said have ultimately benefited the companies. The analyst added that Honeywell’s current valuation could be an attractive entry point heading into a separation. “Looking at comparable industrial ‘urge-to-demerge’ stories, we have seen Honeywell’s peers like GE, United Technologies, Danaher, and Ingersoll-Rand unlock values through portfolio simplification,” he wrote. “While we are arguably some time away from the planned 2H26 Aero/Automation separation, Honeywell’s improving financials showcase a strong momentum and execution heading into the breakup that we believe are presenting favorable risk/reward.” Dray also highlighted Honeywell’s strong and enduring core businesses, which subsiding headwinds from here should allow the market to focus better on. “We see growing momentum across core segments, improved visibility on execution, and a credible roadmap toward value unlock,” the analyst wrote. “With management executing well, separation milestones approaching, and ‘deal purgatory’ perceptions fading, we believe investor focus will shift to the structural upside embedded in two strong standalone franchises positioned for sustainable growth and margin expansion.” ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
