HON: Post-Spin PT Update: Standalone HON Technologies

Research evidence excerpt

HON: Post-Spin PT Update: Standalone HON Technologies

RBC Capital Markets, LLC

Deane Dray, CFA (Co-Head of Global Industrials Research)

(212) 428-6465, deane.dray@rbccm.com

Jeffrey Reive, CFA (Analyst)

(212) 618-3325, jeffrey.reive@rbc.com

Kenny Sim, CFA (AVP)

(212) 301-1628, kenny.sim@rbccm.com

Thomas Wisnewski, CFA (Senior Associate)

June 30, 2026 (212) 301-1631, thomas.wisnewski@rbccm.com

Honeywell TechnologiesRESEARCH Post-Spin PT Update: Standalone HON Technologies Outperform

NASDAQ: HON; USD 227.80 Our view: We are updating our price target to from $275 to $272

for Outperform-rated Honeywell Technologies following the June-29 Price Target USD 272.00 ↓ 275.00

Aerospace spin-off and 2-for-1 reverse stock split. Our PT is derived Scenario Analysis*

from a sum-of-the-parts applying peer-group EV/EBITDA multiples to each

Downside Current Price Upside

segment's 2027E EBITDA, plus ~$21/share for its ~48% Quantinuum stake Scenario Price Target Scenario

(net of potential tax leakage). Our model is unchanged as the company will 193.00 227.80 272.00 309.00

report 2Q26 as a combined entity (including Honeywell Aero results). We 13% 21% 38%EQUITY

believe the RemainCo's three-year financial framework (4%-6% organic, *Implied Total Returns

~400 bps margin expansion, +10% EPS growth) outlined at its investor day Key Statistics

(recap here) is conservative and achievable. Shares O/S (MM): 638.8 Market Cap (MM): 145,519

Dividend: 4.58 Yield: 2.0%

Key points: Avg. Daily Volume: 2,804,754

Honeywell Technologies began trading as a standalone entity on June-29, RBC Estimates

and we believe the pure-play automation positioning warrants a re-rating FY Dec 2024A 2025A 2026E 2027E

toward industrial automation peers. The company operates across three EPS, Ops Diluted 8.73 9.78 10.50 11.35