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We came across a bullish thesis on Honeywell International Inc. on Value investing subreddit by wisefox200. In this article, we will summarize the bulls’ thesis on HON. Honeywell International Inc.’s share was trading at $227.24 as of January 28th. HON’s trailing and forward P/E were 22.85 and 20.16 respectively according to Yahoo Finance.
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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. HON presents a classic value-unlocking opportunity, appealing to investors seeking steady, long-term upside rather than rapid gains. The company is a diversified conglomerate, which naturally limits explosive stock moves, but its strategic asset separations create meaningful catalysts.
The materials business spin-off in October 2025 set the stage, and the upcoming Aerospace separation in 2026 is expected to unlock further value by allowing the standalone business to trade at a higher multiple. Beyond the spin-offs, Honeywell holds a significant 54% stake in Quantinuum, a quantum computing firm valued at roughly $5 billion, effectively embedding a “free option” into Honeywell’s stock. With quantum computing poised as a potential next-generation technology, Quantinuum’s anticipated IPO in 2027 could provide substantial upside to Honeywell shareholders. The stock currently trades at $191, with price targets in the $230–260 range, offering meaningful appreciation potential.
Fundamentally, Honeywell is reasonably valued around 20x P/E and provides a 2.5% dividend, supported by strong cash flow generation. While top-line growth is modest, the company’s robust balance sheet and strategic spin-offs position it well for both capital returns and potential rerating.
For investors, Honeywell combines the stability of a diversified industrial with the optionality of emerging technologies like quantum computing, making it a compelling, if “boring,” investment with clear catalysts for value realization. Overall, Honeywell exemplifies a patient, strategic play where structural corporate moves, embedded optionality, and solid fundamentals converge to create a multi-year growth and rerating opportunity.
Previously we covered a bullish thesis on GE Aerospace (GE) by Asymmetric Ventures in May 2025, which highlighted its strong MRO services, global network, and predictive maintenance technology supporting long-term growth. The stock has appreciated approximately 23.60% since our coverage. The thesis still stands as GE remains a leader in aerospace. wisefox200 shares a similar focus but emphasizes Honeywell’s value-unlocking spin-offs and stake in quantum computing.