Morgan Stanley Upgrades Honeywell Aerospace to Overweight

Honeywell Aerospace shares rose by 5.5% on Wednesday morning after Morgan Stanley analyst Kristine Liwag upgraded the stock to Overweight from Equal-weight.

The firm set a $205 price target, citing deep valuation discounts post-spin-off and identifying a prime entry point following the company's June 29 spin-off.

Morgan Stanley highlighted that Honeywell Aerospace is now the cheapest large-cap aerospace name in its coverage universe, trading at approximately 16.8x estimated 2028 price-to-free-cash-flow and ~11.4x 2028 EV/EBITDA.