--- title: "Honeywell (HON): A Fresh Look at Valuation Following Bank of America Downgrade and Solstice Advanced Materials Spinoff" description: "Honeywell (HON) shares are under pressure following a Bank of America downgrade to sell, citing slower earnings growth and the Solstice spinoff. The stock has declined 15.7% year-to-date, with a total" type: "news" locale: "en" url: "https://longbridge.com/en/news/267022776.md" published_at: "2025-11-22T09:50:38.000Z" --- # Honeywell (HON): A Fresh Look at Valuation Following Bank of America Downgrade and Solstice Advanced Materials Spinoff > Honeywell (HON) shares are under pressure following a Bank of America downgrade to sell, citing slower earnings growth and the Solstice spinoff. The stock has declined 15.7% year-to-date, with a total shareholder return of -10% over 12 months. Analysts debate its undervaluation, with fair value estimates ranging from $216.58 to $245.60. Honeywell's breakup into three companies may unlock value, but economic headwinds pose risks. Investors are reassessing whether the current price is a buying opportunity. Honeywell International (HON) shares are catching attention after Bank of America downgraded the stock to sell. The move was attributed to expectations of slower earnings growth in 2026 and the spinoff of Solstice Advanced Materials. See our latest analysis for Honeywell International. Honeywell’s share price has taken a noticeable hit recently, with a 30-day decline of 8% that extends to a sharp 15.7% fall year-to-date. Even factoring in dividends, total shareholder return sits at -10% over the past 12 months. While the recent Bank of America downgrade and bearish options activity have pressured sentiment, this year’s slide follows a mix of technical support and signs of resilience. Momentum is clearly fading as investors reassess the outlook and valuation. If Honeywell’s recent moves have you reassessing your portfolio, this could be a good time to broaden your search and discover See the full list for free. After months of red ink for Honeywell, investors are now faced with a pivotal question: is today’s lower price a compelling entry point, or is the market already reflecting all the growth challenges and opportunities ahead? ## Most Popular Narrative: 22.6% Undervalued With a fair value estimate of $245.60 compared to the last close of $190.02, the most widely followed narrative sees Honeywell as meaningfully undervalued by the market. This sets the stage for a debate around the company’s catalysts and assumptions. > *Honeywell's decision to separate into three independent companies (Automation, Aerospace, and Advanced Materials) could unlock significant value and better position each entity for long-term growth, impacting revenue and margins positively.* Read the complete narrative. What could possibly justify such a steep disconnect from the current share price? The calculations rest on a transformative business breakup, the promise of stronger margins, and a growth runway analysts usually reserve for market leaders. Curious to see which expectations power that bold target? Delve deeper for the full story behind the numbers. **Result: Fair Value of $245.60 (UNDERVALUED)** Have a read of the narrative in full and understand what's behind the forecasts. However, persistent economic headwinds and uncertainties around the upcoming breakup could threaten Honeywell’s expected margin gains and longer term growth story. Find out about the key risks to this Honeywell International narrative. ## Another View: How Does the SWS DCF Model Value Honeywell? While analyst and market multiples point to Honeywell as undervalued, our SWS DCF model offers a second opinion. It estimates Honeywell’s fair value at $216.58, which is about 14% above the current share price. This suggests the margin of undervaluation could be less dramatic than multiples-based approaches claim. Which perspective makes more sense for you? Look into how the SWS DCF model arrives at its fair value. ## Build Your Own Honeywell International Narrative If you see the story differently, or want to dig into the numbers on your own terms, it only takes a few minutes to develop your own perspective. Do it your way A great starting point for your Honeywell International research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision. ## Looking for More Investment Ideas? Unlock your edge in the market by tapping into unique opportunities you won’t want to miss. There is a world of smart stocks to uncover right now: - Seize high potential by uncovering these 917 undervalued stocks based on cash flows with solid fundamentals and strong cash flows others are overlooking. - Capture income potential with these 17 dividend stocks with yields > 3% that offer attractive yields and may help build your portfolio’s stability over time. - Gain an early foothold in breakthrough technology companies by targeting these 25 AI penny stocks shaping the new era of artificial intelligence advancements. *This article by Simply Wall St is general in nature. **We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.** It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.* ### Related Stocks - [HON.US - Honeywell](https://longbridge.com/en/quote/HON.US.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 霍尼韦尔｜8-K：2025 财年 Q4 营收 97.58 亿美元不及预期 | | [Link](https://longbridge.com/en/news/274138356.md) | | 由于绿色交易的推迟，霍尼韦尔刚刚从一项化学品收购中削减了 5 亿美元 | 霍尼韦尔已同意以 13.25 亿英镑（18 亿美元）的价格收购约翰逊·马特公司的催化剂技术业务，较原先的 18 亿英镑有所降低，原因是市场环境严峻以及绿色项目的推迟。这项收购使霍尼韦尔能够扩展其在低排放燃料方面的产品。约翰逊·马特公司也在减 | [Link](https://longbridge.com/en/news/276584738.md) | | 霍尼韦尔国际的股票是否跑赢了标普 500 指数？ | 霍尼韦尔国际股票是否表现优于标普 500？ | [Link](https://longbridge.com/en/news/277071859.md) | | 霍尼韦尔宣布季度分红 | 霍尼韦尔（NASDAQ: HON）宣布每股季度股息为 1.19 美元，将于 2026 年 3 月 13 日支付给截至 2026 年 2 月 27 日的股东。该公司强调其在各个行业提供解决方案的角色，得益于其霍尼韦尔加速器和霍尼韦尔 Forg | [Link](https://longbridge.com/en/news/275945041.md) | | 霍尼韦尔国际公司（NASDAQ:HON）宣布季度股息为 1.19 美元 | 霍尼韦尔国际公司（NASDAQ:HON）宣布每股季度分红为 1.19 美元，将于 3 月 13 日支付给截至 2 月 27 日的股东。这代表着年化分红收益率为 2.0%。该公司已连续 14 年提高分红，派息比率为 41.9%。分析师预计霍尼 | [Link](https://longbridge.com/en/news/276911779.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.