Morgan Stanley Boosts Honeywell Aerospace to Overweight on Undervalued Shares

Morgan Stanley upgraded Honeywell Aerospace to Overweight from Equal-weight on Wednesday, citing a discounted valuation and potential catalysts despite ongoing supply-chain risks.

The investment bank attributed the upgrade to the stock's roughly 27% decline since its June 29 spinoff, which it believes has created an attractive entry point for investors.

Morgan Stanley maintained its $205 price target for Honeywell Aerospace and acknowledged lingering execution risks. However, the bank remains optimistic about the company's prospects.