Deutsche upgrades Honeywell to Buy on upside from separation

Deutsche Bank upgraded Honeywell (HON) to Buy from Hold with a $260 price target up from $236, which implies over 20% upside from current levels. The firm agrees with management’s decision to separate Aerospace from Automation, saying Honeywell’s conglomerate structure “has become a burden to organic growth.” Deutsche’s base case sum-of-the-parts valuation now suggests 30% upside to the shares, the analyst tells investors in a research note. The “deal limbo” can be bridged by a return to a “beat/raise mantra” in 2025, as the newly initiated guidance is conservative, contends the firm. Honeywell in post-market trading is up 73c to $210.55 following the upgrade.