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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.

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.

While we acknowledge the potential of HON as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than HON and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Dividend Stocks with Over 8% Yield and Retirement Stock Portfolio: 12 Low Risk Investments

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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