Honeywell Aerospace Upgraded by Morgan Stanley Amid Undervalued Status

Honeywell Aerospace's stock rating has been upgraded by Morgan Stanley from Equalweight to Overweight, with a price target of $205.00.

Analyst Kristine Liwag noted that HONA shares have declined around 27% since the June 29, 2026 spin, compared to the S&P 500 rising about 5%. The company now trades at approximately 16.8 times 2028 price-to-free cash flow and approximately 11.4 times 2028 enterprise value-to-EBITDA.

These multiples represent the lowest among large-cap aerospace companies in Morgan Stanley's coverage, including Boeing, RTX, General Electric, Howmet, and TransDigm. HONA trades at approximately a 35% discount to the peer median of 25.5 times price-to-free cash flow and approximately a 38% discount to the peer median of 18.3 times enterprise value-to-EBITDA.

The stock currently trades at $160.76, just 7% above its 52-week low of $150.03, according to InvestingPro data. Morgan Stanley stated the company has a market capitalization of approximately $51 billion and an enterprise value of approximately $65.9 billion.