RBC Capital has adjusted its price target for Honeywell International, lowering it slightly from $270 to $269 while keeping an Outperform rating. The new target remains above the current stock price of $213, and InvestingPro data suggests the stock is undervalued with a Fair Value of $231, placing it among potential opportunities on the platform’s most undervalued stocks list.
The firm noted Honeywell reported a strong third-quarter operating beat and raised its 2026 guidance metrics above consensus for the second consecutive quarter. All three segments contributed to approximately 7% organic growth. The Performance Aerospace & Technologies segment delivered 8% growth while Industrial Automation margins expanded 350 basis points. Stranded costs are expected to be completely eliminated by year-end 2026.
Short-cycle orders grew 8% and core Industrial Automation orders increased 15%, supporting the 4%-6% organic growth framework for 2027. RBC stated it remains positive on Honeywell and appreciates management’s pattern of under-promising and over-delivering. The company maintains a "GOOD" financial health score and has raised its dividend for 15 consecutive years, according to InvestingPro Tips.
In other recent news, Honeywell Technologies reported third-quarter 2026 adjusted earnings of $2.27 per share, surpassing Wall Street’s estimate of $2.16. The company’s revenue for the quarter was $4.99 billion, slightly below the consensus of $5.01 billion. Despite this, Honeywell announced a 7% increase in organic sales and raised its full-year outlook for growth, earnings, and free cash flow. Furthermore, Bernstein SocGen Group raised its price target for Honeywell International shares to $256 from $254, maintaining a Market Perform rating.