Honeywell Stock Edges Lower on Honeywell Aerospace Downgrade

Honeywell stock has been trading softer in mid-September due to a downgrade of its recently spun-off Honeywell Aerospace unit by Melius Research. The research house downgraded Honeywell Aerospace from strong-buy to Hold, signaling a more cautious stance on the spin-off's near-term upside. This move was one of several analyst views on the stock, with five analysts rating it Buy, ten at Hold, and one at Sell.

The average price target for Honeywell Aerospace is USD 221.54, as of mid-September 2026. Morgan Stanley raised its rating from Equal Weight to Overweight and set a price target of USD 205.00 in an earlier research note. Another house has a more ambitious objective of USD 250.00.

The downgrade by Melius Research highlights both the potential growth in aviation-related demand and the execution risks embedded in the new standalone structure of Honeywell Aerospace.