economy
Our rating, price target and outlook for newly spun off Honeywell Aerospace
Given the robust backlog, streamlined operations, and high demand for its products, we see plenty of upside in our newest position.
TL;DR
- Honeywell's aerospace business has been spun off into a new, publicly traded company.
- The new company's priorities include strengthening its supply chain and pursuing strategic deals for growth.
- Key end markets are commercial aftermarket (44% of FY25 sales), defense and space (41%), and commercial original equipment (15%).
- Operations are divided into electronic solutions, engines and power systems, and control systems.
- The pure-play structure is expected to eliminate the conglomerate discount and enable focused R&D.
- Analysts initiate coverage with a buy rating and a price target of $285, forecasting upside potential.
- The company reported FY25 sales of $17.4 billion with 12% organic growth and $4.3 billion in adjusted EBITDA.