Not investment advice to buy. I own shares.
Seems like a classic value unlocking play. Why interesting and boring? Well first of all it’s a conglomerate, hence probably wont explode and isn’t for day trading. Interesting? I’ll explain below.
They already spun off the materials business back in Oct 2025. Since then the spinoff went up 3% but Honeywell went down 6%. The big catalyst is coming in 2026 when they seperate Aerospace. Should trade at a higher multiple as a standalone company.
Also nobody talks about the quantum stake. They own 54% of Quantinuum. Based on the last valutation their stake is worth like $5B which is basically a free option embedded in the price. Quantum computing might be the next AI play? Maybe? Quantinuum might IPO in 2027.
Price targets 230-260 USD. Now at 191.
The fundementals seem fair here. Trading around 20x PE with a 2.5% dividend. Cash flow is strong but top line growth is slow.
Is this a value trap or a smart sum of parts play. Anyone else buying?