Nose-to-Tail Scale, But Limited Lift; Initiate at Equal-weight

Research evidence excerpt

Nose-to-Tail Scale, But Limited Lift; Initiate at Equal-weight

Foundation

July 8, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMHoneywell Aerospace Inc | North America Kristine T Liwag

Equity Analyst

Nose-to-Tail Scale, But Limited Kristine.Liwag@morganstanley.comJason T Holcomb +1 212 761-2980

Research Associate

Jason.Holcomb@morganstanley.com +1 212 761-5592

Lift; Initiate at Equal-weight Justin M Lang

Justin.Lang@morganstanley.com +1 212 761-6251

HONA is a scaled aerospace & defense supplier with a reusable Gabrielle Knafelman

technology model and durable aftermarket/defense exposure. Research Associate

Gaby.Knafelman@morganstanley.com +1 212 761-4838

However, lower peer-relative growth and limited margin Shaina C Zuber

expansion keep risk/reward balanced, in our view. Initiate at ResearchShaina.Zuber@morganstanley.comAssociate +1 212 761-6353

Equal-weight with a PT of $255.

Honeywell Aerospace Inc (HONA.O, HONA US)

Aerospace | United States of America

Key Takeaways

Stock Rating Equal-weight

HONA is a scaled, standalone aerospace & defense supplier with mission-critical Industry View Attractive

Price target $255.00

“nose-to-tail” content across commercial, defense, space, & emerging platforms. Shr price, close (Jul 6, 2026) $237.70

Mkt cap, curr (mm) $75,323

HONA's “develop once, deploy everywhere” R&D model reuses core tech across 52-Week Range $297.50-200.00

markets, generating higher than peer median margins & expanding addressable Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

markets. EPS ($)** ND 8.24 9.69 10.80

Prior EPS ($)** - - - -

Commercial aftermarket, Retrofits, Modifications, & Upgrades (RMUs), and P/E - 28.3 24.3 21.8

Defense & Space provide durable and diversified revenue streams. EPS ($)§ - 8.94 10.08 11.27

Div yld (%) - 0.5 1.0 1.1