JPMorgan Turns More Constructive on Honeywell (HON) in 2026 Outlook

Honeywell International Inc. (NASDAQ:HON) is included among the 12 Best Dow Jones Dividend Stocks to Buy According to Hedge Funds.

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On January 16, JPMorgan upgraded Honeywell International Inc. (NASDAQ:HON) to Overweight from Neutral and raised its price target to $255 from $218. The change came as part of the firm’s 2026 outlook for the electrical equipment and multi-industry space. JPMorgan said it has grown more constructive on Honeywell, pointing to what it sees as a valuation gap. The stock is trading at a discount to the company’s sum-of-the-parts, and the analyst flagged a “disconnect” between the share price and the value of Honeywell’s assets, particularly its aerospace business.

A few days earlier, on January 14, Honeywell said it plans for its majority-owned quantum computing unit, Quantinuum, to confidentially file draft IPO papers with US regulators. The timing comes as more companies look for ways to develop and scale quantum technology to tackle complex challenges, including areas like hydrogen fuel cell battery design and manufacturing for transportation.

Honeywell said the size of the offering and the expected price range have not yet been determined. In September, Quantinuum raised about $600 million from investors, including Nvidia’s venture capital arm, at a $10 billion valuation. Quantinuum operates as a full-stack quantum computing provider, with its technology already in use by customers such as Honeywell, Airbus, BMW Group, HSBC, and JPMorgan Chase. The company was formed in 2021 after Honeywell separated its quantum computing unit and combined it with Cambridge Quantum.

Last year, Honeywell also reshaped its broader business, splitting its conglomerate structure into three standalone companies focused on automation, aerospace, and advanced materials. It has since divested smaller units to sharpen its focus on strengthening the automation segment.

Honeywell International Inc. (NASDAQ:HON) is an integrated operating company serving customers across industries and geographies, supported by its Honeywell Accelerator operating system and Honeywell Forge platform.

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Disclosure: None.