Added to YB: 2026-03-25
Pitch date: 2026-03-23
HON [bullish]
Honeywell International Inc.
+0.44%
current return
Author Info
Divergent Capital is a self-taught value investor in the tradition of Graham, Buffett and Munger. Sign up for the newsletter.
Company Info
Honeywell International Inc. engages in the aerospace technologies, industrial automation, building automation, and energy and sustainable solutions businesses in the United States, Europe, and internationally.
Market Cap
$140.8B
Pitch Price
$220.61
Price Target
307.00 (+38%)
Dividend
2.15%
EV/EBITDA
18.79
P/E
32.16
EV/Sales
4.40
Sector
Industrial Conglomerates
Category
special_situation
Honeywell International Inc ($HON) Spin-Off: An Asymmetric Opportunity Unlocking Significant Value for Shareholders
HON: 3-way breakup (Aerospace & Automation spin Q3 2026) targets 39% upside to $307 vs $221.50 current. HONA 27.3% EBITDA margin (2nd in peer group) justifies 29.5x EV/EBITDA → $207/share. Automation 22.1% margin at peer median 16.2x → $101/share. Current 17x conglomerate multiple misprices both. Risks: $202M HONA standalone costs, Flexjet litigation, $1.5-2B separation costs. Catalysts: June 3 Investor Day, Form 10 approval, Q3 spin-off. Jan 2027 $230 calls offer 10x leverage at 13% breakeven.
Read full article (2 min)