Jefferies has lowered its price target on Honeywell International to $260 from $269.40, the firm said, basing the new target on a multiple of 24 times Honeywell’s 2027 earnings-per-share projection of $9.60. Jefferies notes that industrial companies with exposure to automation typically trade near a 24-times earnings multiple, and its valuation explicitly incorporates Honeywell’s ownership stake in Quantinuum.
Separately, Citi analysts assessed Honeywell’s recent portfolio changes and the separation of HONA, concluding that the company’s technology and automation holdings “appear well positioned to deliver more consistent and predictable topline growth.” Citi cited a simplified business mix and a greater emphasis on innovation and new product introductions as supporting factors, along with improving short-cycle end markets and resilient backlog and order momentum in longer-cycle businesses.
Despite the constructive view on the reconfigured portfolio, Citi flagged that stranded costs are weighing on Honeywell’s margin performance in 2026. The analysts added that the company is positioned to take steps to mitigate those stranded costs in the subsequent year, indicating the margin headwinds may be temporary if mitigation plans succeed.
Citi also pointed to the company’s HON Accelerator initiative as a lever to improve execution. In Citi’s model, gains driven by HON Accelerator could support margin expansion and contribute to earnings-per-share growth as the company implements its streamlined strategy.
Taken together, the analyst moves reflect differing near-term and medium-term perspectives: Jefferies’ calculation adjusts the market valuation applied to projected 2027 earnings, while Citi focuses on operational positioning, product innovation, and execution programs that could enhance margins and stabilize revenue growth after the corporate restructuring and the HONA separation.
Summary
Jefferies cut its Honeywell price target to $260 from $269.40, using a 24-times multiple on 2027 EPS of $9.60 and including Honeywell’s stake in Quantinuum. Citi said the reoriented technology and automation portfolio is positioned for steadier top-line growth, though stranded costs will pressure margins in 2026 before mitigation is expected to take effect. Citi also highlighted HON Accelerator as a driver for improved execution and future margin expansion.