Bank of America Securities has upgraded Honeywell from ‘Neutral’ to ‘Buy’, increasing the price target to \$250. The decision stems from strong earnings momentum, guidance revisions, and a compelling valuation story that now positions Honeywell as a more attractive industrial play.
🔹 Strong Q1 Results: Honeywell delivered an adjusted EPS of \$2.51, beating analyst expectations. Management’s decision to raise full-year guidance signals increased confidence in ongoing operations and macro resilience.
🔹 Positive EPS Outlook: BofA forecasts earnings of \$10.44 in 2025 and \$11.54 in 2026, highlighting the company’s earnings durability and operational leverage.
Resilient Portfolio: Honeywell’s balanced exposure across aerospace, industrial automation, and building technologies shields it from volatility and allows for sustainable margins.
Valuation Opportunity: The stock trades at a discount to industrial peers. A 17× EV/EBITDA multiple on 2026 projections offers room for rerating, with the stock still trailing the broader sector despite solid fundamentals.
💰 Dividend Fundamentals
Yield: 2.15%
Annual Dividend: \$4.52 per share
Payout Ratio: \~51.5%
Growth Streak: 15 consecutive years of dividend increases
Next Ex-Dividend Date: May 16, 2025
Honeywell combines a reliable dividend profile with renewed earnings confidence and operational strength. For investors seeking income with upside potential, the stock’s recent upgrade reinforces a growing bullish narrative.