Street View: Stranded cost cuts, demand momentum power Honeywell's bull case

Honeywell International

24/07/2026 12:57

Honeywell Technologies HON.O raised its FY profit forecast on Thursday, helped by resilient demand for its industrial and building automation products, as the company reported its first earnings as a standalone business after a three-way split.

SHORT-CYCLE ORDERS BOOST OUTLOOK
** Daiwa Capital Markets ("outperform," PT: $277) says HON set to benefit from industrial demand pick-up and cutting stranded costs after the spin-off
** Sees margin gains from favorable pricing, faster cost-management at the Industrial Automation segment
** Evercore ISI ("outperform," PT: $275) says standalone cost-elimination running ahead of plan and growth in short-cycle orders supports the outlook for the next 12 months
** RBC Capital Markets ("outperform," PT: $298) says stranded-cost elimination an "important near-term earnings lever"

    ** Citigroup ("buy," PT: $279) says wide pickup in customer demand, improving growth visibility across much of the company's portfolio supports raised forecast
  

 (Reporting by Sudeshna Ghoshal in Bengaluru)
 ((Sudeshna.Ghoshal@thomsonreuters.com;))