Honeywell Aerospace (NASDAQ:HONA) Stock Rating Cut to Market Perform at BMO Capital Markets

Key Points

• BMO Capital Markets downgraded Honeywell Aerospace from “outperform” to “market perform” and lowered its price target from $213 to $181, implying roughly 13% upside from the stock’s $160.04 price.
• Analyst sentiment has weakened, with the consensus rating at “Hold” and an average price target of $196.80; ratings include four Buys, twelve Holds and two Sells.
• Honeywell Aerospace exceeded quarterly earnings expectations, reporting $2.21 in EPS versus the $1.90 consensus on $4.64 billion in revenue, but supplier constraints, modest sales growth and a high valuation remain concerns.

Honeywell Aerospace (NASDAQ:HONA - Get Free Report) was downgraded by analysts at BMO Capital Markets from an "outperform" rating to a "market perform" rating in a report released on Friday, MarketBeat Ratings reports. They presently have a $181.00 price target on the stock, down from their prior price target of $213.00. BMO Capital Markets's price target would indicate a potential upside of 13.10% from the company's current price.

Several other research analysts also recently commented on HONA. Zacks Research downgraded shares of Honeywell Aerospace from a "hold" rating to a "strong sell" rating in a research note on Monday, September 14th. BNP Paribas Exane cut their price target on shares of Honeywell Aerospace from $210.00 to $160.00 and set a "neutral" rating on the stock in a report on Tuesday, October 6th. Wells Fargo & Company set a $195.00 price objective on shares of Honeywell Aerospace in a research report on Monday, August 10th. Wall Street Zen raised shares of Honeywell Aerospace to a "hold" rating in a research note on Sunday, July 12th. Finally, Argus set a $210.00 target price on shares of Honeywell Aerospace in a report on Friday, October 9th. Four analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $196.80.

Honeywell Aerospace Stock Performance

Shares of NASDAQ:HONA opened at $160.04 on Friday. The stock has a market cap of $50.72 billion and a PE ratio of 85.58. The stock has a fifty day simple moving average of $160.23. Honeywell Aerospace has a 52 week low of $149.19 and a 52 week high of $297.50.

Honeywell Aerospace (NASDAQ:HONA - Get Free Report) last released its earnings results on Wednesday, October 28th. The company reported $2.21 earnings per share for the quarter, beating analysts' consensus estimates of $1.90 by $0.31. The company had revenue of $4.64 billion during the quarter. On average, equities research analysts predict that Honeywell Aerospace will post 7.77 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the company. Washington Trust Advisors Inc. increased its holdings in Honeywell Aerospace by 13.4% in the 3rd quarter. Washington Trust Advisors Inc. now owns 523 shares of the company's stock valued at $81,000 after acquiring an additional 62 shares during the last quarter. Summit Wealth Group LLC Co. grew its holdings in Honeywell Aerospace by 5.2% during the 3rd quarter. Summit Wealth Group LLC Co. now owns 1,387 shares of the company's stock valued at $215,000 after buying an additional 69 shares in the last quarter. BIP Wealth LLC increased its holdings in shares of Honeywell Aerospace by 2.2% in the 3rd quarter. BIP Wealth LLC now owns 3,297 shares of the company's stock worth $511,000 after buying an additional 70 shares during the last quarter. Acropolis Investment Management LLC raised its holdings in Honeywell Aerospace by 10.0% during the 3rd quarter. Acropolis Investment Management LLC now owns 838 shares of the company's stock valued at $130,000 after buying an additional 76 shares during the period. Finally, Welch Group LLC lifted its stake in Honeywell Aerospace by 2.4% in the third quarter. Welch Group LLC now owns 3,875 shares of the company's stock worth $601,000 after purchasing an additional 89 shares during the last quarter.

More Honeywell Aerospace News

Here are the key news stories impacting Honeywell Aerospace this week:

• Positive Sentiment: Honeywell Aerospace reported third-quarter EPS of $2.21, above the $1.90 analyst consensus, on revenue of approximately $4.64 billion. The company raised its full-year 2026 adjusted EPS outlook to $7.85–$8.00, citing backlog growth and continued commercial and defense demand. Honeywell Aerospace Q3 Earnings Beat Estimates
• Positive Sentiment: The company declared its inaugural quarterly dividend of $0.40 per share, equal to $1.60 annually and an indicated yield of about 1.0%. The dividend is payable December 4 to shareholders of record November 13. Honeywell Aerospace Declares First Quarterly Cash Dividend
• Positive Sentiment: Honeywell Aerospace plans to invest $500 million in a new 300,000-square-foot Tempe, Arizona manufacturing facility. The project is expected to create about 600 jobs and expand capacity for current and next-generation aviation and defense programs. Honeywell Aerospace Arizona Manufacturing Facility
• Neutral Sentiment: Analyst views were mixed. BNP Paribas raised its price target to $175, while Evercore ISI lowered its target to $195 and JPMorgan cut its target to $210 while maintaining a neutral rating. These targets remain above the stock’s approximately $160 level but signal valuation and execution concerns.
• Negative Sentiment: The earnings beat did not translate into stronger near-term growth expectations. Sales rose only 2% year over year, adjusted EBIT increased 1%, and management said mechanical supplier constraints continue to limit deliveries. Management emphasized that more substantial output growth is expected in 2027, while tariff refunds and earlier deal closings helped support the latest quarter. Why Honeywell Aerospace Stock Fell Today
• Negative Sentiment: Investors may also be discounting Honeywell Aerospace’s rich valuation, higher interest expense, separation-related costs and the uncertainty of operating as a newly independent public company.
• Negative Sentiment: Several law firms reiterated notices about a securities class action covering investors who purchased shares between June 29 and September 1, 2026. The lead-plaintiff deadline is November 23, creating an additional near-term legal overhang. Rosen Honeywell Aerospace Securities Class Action Notice

Honeywell Aerospace Company Profile

Honeywell Aerospace develops and supplies aerospace technologies for commercial aviation, business and general aviation, defense, and space customers. Its portfolio includes aircraft engines and auxiliary power units, avionics, flight controls, navigation and communication systems, environmental and thermal-management equipment, wheels and brakes, and other propulsion and mechanical systems.

The company also provides aftermarket support, including maintenance, repair and overhaul services, replacement parts, upgrades, technical assistance, and digital solutions designed to improve aircraft performance and operational efficiency.

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