Is Honeywell rupture for the gap value? News ad

Honeywell International Today

Honorable

Honeywell International

$ 205.27 +0.26 (+0.13%)

As of 04:00 on the East

52-week range

$ 189.75

▼

$ 242.77

Dividend yield

2.20%

P/e ratio.

23.57

Value is valuable

$ 248.71

On February 6, 2025, Honeywell announced plans to completely divide its automation and aerospace technologies. This should be behind his earlier decision to turn off your unit for improved materials. Nevertheless, the desire for complete parting was largely due to the activist by the investor Elliott Investment Management. The company received a share of $ 5 billion in November 2024, forcing the company to disclose the share value.

As soon as the split is completed, which is expected in 2026, investors will keep shares in three different business units Covering aerospace reserves, materials and technological stocks. Honeywell seeks to create stronger, more focused enterprises that can grow independently. This reflects the GE approach when he announced his own decay in 2021. This restructuring led to three separate companies: GE Aerospace, GE HealthINArE Technologies Inc.Field NYSE: HACAnd GE Vernova NYSE: GEVwhich controls his operations of renewable energy sources.

Obtainable promotions fell by about 6% in the news, increasing their losses in 2025 and pushing the shares below its 250-day simple sliding average. From a technical point of view, the promotion is presented at these levels.

Nevertheless, the fall was mainly related to the company’s income report in the fourth quarter. While Honeywell delivered strong headlines, a deeper look at the results suggests another reason for the split. The company announced profit for a campaign in the amount of $ 2.47, which was higher than analysts expected in the amount of $ 2.37. The revenue amounted to $ 10.09 billion, surpassing the estimates of $ 9.83 billion. Despite these strong indicators, most of the company’s growth in 2024 came from the aerospace division, while other segments fought. Separation can allow the aerospace block to grow without being burdened by the unit of slow development.

This raises questions about the near future for Hon shares. The full gap will not be completed until 2026. The main number of materials is expected in 2025, but investors who are buying now need a long -term prospect to benefit from restructuring.

This means that the views on the striker Hanivel, which was more careful and can hint at the rationale behind the division. Investors of management and activists can consider the conglomerate too complicated to effectively manage as the only essence.

For investors focused on income, Honeywell’s dividend yield of 2.18% and an annual payment of $ 4.52 per share can give a reason to withhold shares. Analysts are currently evaluating the shares of a moderate purchase with a consensus target price of $ 2,48.71, which is 19% growth. Nevertheless, several analysts reduced their target prices from the moment of income report, while some fell below the consensus.

That the old is new again

It is still unknown whether the decay of Honeywell will achieve its alleged goals. Nevertheless, the decision to expand his aerospace division follows the scheme observed with companies such as GE and Lockheed Martin, which have been restructured in recent years.

This marks the transition from a long -term consolidation trend in the aerospace industry. Many of the same companies that have once been looking for diversification now see a higher value in a more purposeful approach.

For GE, the strategy paid off. Over the past 12 months, his shares increased by 47%, and in 2025 – by 23% as of February 11.

Honeywell hopes for the same success. Nevertheless, investors will carefully monitor to see whether this step really unlocks greater value or simply retells the existing problems of the company.