Stocks

Morgan Stanley Upgrades Honeywell Aerospace to Overweight with 35% Upside Potential

Guavy AI Editorial Team Published August 20, 2026

Instruments

HON

Morgan Stanley upgraded Honeywell Aerospace (HONA) stock to 'Overweight' and maintained its price target of $205, indicating potential upside of nearly 35% from its previous close. The upgrade comes after the company's recent weakness in a sharp downtrend since its spinoff in late June.

Morgan Stanley analyst Kristine Liwag said that HONA stock is now the most attractive large-cap aerospace name in her coverage universe, trading at about 11.4x its estimated 2028 EBITDA, which marks a massive 38% discount to the average sector multiple.

Liwag acknowledged key challenges facing Honeywell Aerospace, including limited margin expansion, muted free cash flow conversion, and lower next-gen commercial content. However, she said that 'the valuation now more than compensates for these risks.'

Morgan Stanley Upgrades Honeywell Aerospace to Overweight with 35% Upside Potential

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