NEW YORK, June 10, 2026, 15:03 (EDT)
- Honeywell was last around $208, falling about 3.6% from Tuesday’s close. The move comes as focus turns to how the market is pricing Honeywell after the aerospace spinoff.
- Barclays lowered its price target on Honeywell to $239 from $251. Bernstein started coverage at Market Perform, setting a $233 target.
- Next up, Honeywell Technologies has its investor day set for June 11. The record date for the Aerospace spin-off lands June 15.
Honeywell International Inc. shares dropped on Wednesday as the spin-off chatter settled and investors started focusing on the value of what’s left. The stock was last trading at $207.93, off $7.77 from Tuesday’s close. Shares touched a low of $207.86 earlier in the session, with volume topping 2.2 million.
The timing is key. Honeywell had just reiterated its 2026 targets and offered initial figures for Honeywell Technologies, the automation company set to stay once aerospace splits off. But the valuation questions are still there. If anything, they’re now more pointed.
Barclays cut its price target on Honeywell to $239 from $251 on Wednesday, sticking with an Overweight. The firm pointed to a softer near-term cash-flow outlook as it revised its model before Honeywell’s capital markets day. Bernstein’s Varun Govindaraj started coverage at Market Perform with a $233 target, saying the Aerospace separation lets Honeywell focus more on automation, though the rest of the business lacks enough tech and customer overlap for a clean automation play.
Honeywell set June 15 as the record date for its spin-off. Shareholders listed on that date should get one share of Honeywell Aerospace for every two Honeywell shares, with distribution planned for June 29. Honeywell Aerospace will use the Nasdaq ticker HONA. Honeywell keeps the HON ticker.
One catch for retail holders: Honeywell is also eyeing a 1-for-2 reverse stock split if the Aerospace spin-off gets done. The move would fold every two shares into one, slicing the outstanding share count from roughly 634 million to around 317 million. The economic value for holders wouldn’t change.
Between June 15 and June 26, Honeywell plans to have two separate markets in its common stock: the regular HON shares, which come with the right to get Aerospace shares, and “ex distribution” HONIV, which will trade without that right. Honeywell Aerospace is also set to start trading when-issued as HONAV near June 15. That will let investors trade Aerospace stock ahead of the formal distribution. Honeywell International Inc.
Honeywell’s latest forecast offers mixed signals for bulls and bears. The company kept its 2026 sales target at $38.8 billion to $39.8 billion, with adjusted earnings per share stuck at $10.35 to $10.65. Those adjusted EPS figures remove certain items management says aren’t part of regular business. Honeywell is also calling for free cash flow of $5.3 billion to $5.6 billion, using a non-GAAP number that takes out capital spending and cash costs tied to separations.
Honeywell Technologies, the company that will remain after the spin-off, is targeting 2026 sales between $19.9 billion and $20.2 billion. Management is guiding for organic sales growth of 2% to 3%, adjusted EPS in a range of $3.95 to $4.15, and about $2.0 billion in free cash flow. The organic growth figure takes out impacts from M&A and other one-time changes so investors can see the core performance.
Honeywell’s numbers come with caveats. The Technologies outlook factors in planned sales of Productivity Solutions and Services and Warehouse and Workflow Solutions, as well as the expected Johnson Matthey Catalyst Technologies buy. There’s also a change in how adjusted results are reported after Quantinuum’s June 4 IPO.
Honeywell’s drop weighed on the Dow. Since the Dow is price-weighted, big moves in expensive stocks like Honeywell shift the index more than similar moves in cheaper names. MarketWatch said earlier Wednesday that Caterpillar and Honeywell led the Dow lower in the morning.
Investors are still focused on the Aerospace separation. Reuters reported Honeywell Aerospace, which sells engines, aircraft parts and defense kit, is part of Honeywell’s plan to split into three lines: automation, aerospace, and advanced materials. The new HONA would sit near GE Aerospace and RTX, while HON shifts toward industrial tech and automation.
Geopolitics are still a factor. On Monday’s investor call, CEO Vimal Kapur said Honeywell has “very high conviction” the Middle East conflict won’t impact the second half of 2026 if there’s “no significant re-escalation.” The company had earlier warned about pressure on process automation and technology demand. Reuters
Splitting off a business could make Honeywell easier for investors to pick apart, but that doesn’t mean it will trade higher. The company has flagged possible delays and risks, saying the separation might not bring the results it expects, could disrupt operations or add costs, and could get hit by tariffs, inflation, supply trouble, market swings, or conflict in key regions. Barclays has pointed to weak cash flow conversion as another issue. If Honeywell after the split doesn’t boost its ability to turn earnings into cash, the multiple on automation may stay stubbornly low.
Honeywell is set to hold its Technologies investor day in New York on Thursday at 1:00 p.m. EDT. Investors want to see how the company moves from its $20 billion sales base toward higher margins, improved cash flow, and a tighter story before when-issued trading is expected to start around June 15.
