Simply Wall St
3 min read
In recent weeks, Honeywell International has moved to resolve its long-running Flexjet litigation by extending their aircraft engine maintenance agreement through 2035, while also unveiling an AI-enabled in-store “Smart Shopping Platform” built with Google Cloud and 66degrees that is set to launch in February 2026.
At the same time, Honeywell’s planned spinoffs, including a forthcoming quantum computing IPO and the separation of its Automation and Aerospace businesses with a newly announced Aerospace leadership team, are reshaping how investors think about the company’s future structure and focus.
Next, we’ll examine how Honeywell’s planned spinoffs and portfolio reshaping could influence its investment narrative following this week’s mixed share performance.
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For Honeywell, the core belief as a shareholder still rests on it being a diversified industrial and technology platform that throws off solid earnings, steady dividend growth and incremental value from its portfolio reshaping. The latest Flexjet settlement removes an overhang rather than creating a new upside catalyst, though it does slightly de‑risk Aerospace by locking in a key maintenance relationship through 2035. The AI-enabled Smart Shopping Platform launch with Google Cloud fits Honeywell’s push to embed software and AI into physical operations, but this is more of a proof point than a near-term financial swing factor. The bigger short-term catalysts remain the upcoming earnings print and execution on the planned spinoffs, while the main risks are separation complexity, high leverage amplifying any misstep and potential earnings “fog” as the portfolio is broken apart.
But one of those separation-related risks may be easier to overlook than it should be. Honeywell International’s shares have been on the rise but are still potentially undervalued by 25%. Find out what it’s worth.
HON 1-Year Stock Price Chart
Seven Simply Wall St Community fair value estimates span roughly US$195 to US$293.63 per share, reflecting very different expectations for Honeywell’s post-spinoff path and how cleanly management can execute on the break-up plan.
Explore 7 other fair value estimates on Honeywell International – why the stock might be worth as much as 33% more than the current price!
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