Honeywell International (HON) is back on investor radars after agreeing with Technip Energies to supply integrated LNG pretreatment and liquefaction solutions for Commonwealth LNG’s planned Louisiana export facility, alongside fresh analyst commentary.
See our latest analysis for Honeywell International.
Honeywell’s latest LNG partnership lands at a time when momentum has been edging higher, with a 7-day share price return of about 5.9% and a 30-day share price return of roughly 8% helping support a 5-year total shareholder return of 18.34%. Recent analyst updates on earnings expectations and mixed ratings commentary have also kept attention on whether the current US$207.38 share price fairly reflects both the Aerospace strength highlighted this week and the company’s broader premium valuation profile.
If this LNG move has you thinking more broadly about industrial and defense exposure, it could be a useful moment to scan aerospace and defense stocks for other names shaping the sector’s next chapter.
With Honeywell trading around US$207.38, and sitting at a discount to both analyst targets and one intrinsic estimate, the key question is simple: is this a quality industrial at a rare markdown, or is the market already baking in the next leg of growth?
With Honeywell last closing at US$207.38 and the most followed narrative pointing to fair value around US$239.40, the gap is hard to ignore.
The analysts have a consensus price target of $252.97 for Honeywell International based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $290.0, and the most bearish reporting a price target of just $210.0.
Want to see what kind of earnings path and margin profile could support that range of outcomes? The narrative leans on measured growth, rising profitability and a richer future multiple. Curious which specific levers matter most to that fair value line? The full story joins those moving parts into one clear valuation case.
Result: Fair Value of $239.40 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this story can change quickly if the planned breakup runs into execution snags or if weaker demand in key regions continues to weigh on Industrial Automation.
Find out about the key risks to this Honeywell International narrative.
Our DCF model points to fair value around US$248.60, which suggests Honeywell at US$207.38 is trading at a discount. That sits awkwardly alongside a rich 21.5x P/E compared with 12.3x for the global Industrials group. Is this a bargain, or just a premium story on sale?
