BofA notes that following press reports on Google’s (GOOGL) quantum chip last week, the firm has been getting increasing investor interest in Honeywell’s (HON) quantum computing business called Quantinuum, in which Honeywell owns a roughly 54% stake after having previously combined its Quantum Solutions business with Cambridge Quantum in 2021. Recently, quantum computing shares have had a strong run and price-to-sales ratios are at all-time highs of 200-times, which could make Honeywell more likely to pursue monetization. Given investors have historically given Honeywell no credit for Quantinuum in its sum-of-the-parts, the firm views a potential monetization of the stake as a positive for Honeywell, on which it keeps a Neutral rating.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on HON:
- Honeywell price target raised to $260 from $220 at Jefferies
- Honeywell announcement suggests faster break-up timeline, says Citi
- Honeywell release signals Aero breakup ‘likely in the works,’ says BofA
- Honeywell call volume above normal and directionally bullish
- Honeywell still exploring alternatives, Capri weighs Versace sale: Morning Buzz