Jefferies bullish on Honeywell ahead of aerospace spin-off, raises PT

Jefferies raises HoneywellHON.O price target to $240 from $235, an upside of 6.1% to the stock's last close

Brokerage expects co to complete spin-off of aerospace technology business by second half of 2026

Says aerospace technology business is expected to be the primary growth engine for the co in 2025 and beyond

Adds that aerospace technology growth primarily driven by ramped up original equipment cycle, ongoing resilience in aftermarket and steady gains in defense

Jefferies notes co's commercial original equipment performance had been weak due to lower production at Boeing BA.N and Airbus AIR.PA, along with delays in ramping up the 737 MAX after its early 2024 grounding and a strike in late 2024, but its' now starting to recover driven by rebounding aircraft deliveries

However, cuts 2025 adj EPS forecast to 10.30 from 10.35

15 of 27 brokerages rate the stock "buy" or higher, 12 "hold"; their median PT is $240- data compiled by LSEG

As of last close, stock had risen marginally 0.2% YTD