Honeywell's Breakup Opportunity

Early Bird Prime for June 8, 2025

With a modest 1.45% uptick in 2025, Honeywell International’s $HON ( ▲ 0.93% ) stock performance has been steady, but not exactly thrilling. It is lagging behind the broader market. So, what's holding back this industrial giant?

Well, it turns out Honeywell's industrial automation segment has been feeling a bit under the weather. The warehouse and workflow solutions businesses have been hit by a case of the "demand blues," with market investments taking a nosedive. Add to that a hefty debt load and rising operational expenses, and you've got a recipe for a stock that's lagging.

But there is a glimmer of hope. Enter Citigroup's Andrew Kaplowitz. This week, the analyst reaffirmed his "Buy" rating for Honeywell, giving it a shiny new price target of $265.00, up from the previous $242.00.

Why the optimism for this stock? The answer lies in Honeywell's grand plan to split into three separate companies next year. It's a corporate breakup, but in a good way! The company is planning to separate its automation, aerospace, and advanced materials businesses into independent, publicly traded entities. The hope is that each new company will be more agile, focused, and ready to conquer the world—or at least the stock market.

Should you buy Honeywell's stock now, hoping for growth, or should you steer clear because of its current struggles? Here’s the answer:

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