The Learning Curve: Industrial Highlights — Should I Stay or Should I Go

研报英文原文证据摘录

The Learning Curve: Industrial Highlights — Should I Stay or Should I Go

June 7, 2026 | 17:38 ET~

Industrial Machinery, Supplies & Components

The Learning Curve: Industrial Highlights — Should I Industrial Machinery, Supplies & Components

Stay or Should I Go Daniel DiCicco, CFA Analyst

daniel.dicicco@bmo.com (333) 274-9893

Legal Entity: BMO Capital Markets Corp.

Bottom Line:

A bit of a knee-jerk reaction to end the week with the XLK down almost ~7%, the

S&P down ~2.6%, and the momentum factor (via Bloomberg) down ~5% on Friday.

Broadcom AI chip guidance was less than expected, but Alphabet raised ~$80 billion

of equity earmarked for AI infrastructure earlier in the week, still demonstrating AI

capex strength. Boeing sounds like it is now teasing 63/month rates for the 737 at some

point in the future. Several IPOs started trading last week (AADX, INIO, and QNT), but

all attention will be on SpaceX next week. The Honeywell Aero investor day sparked a

lackluster reaction in the shares, but we liked what we saw. Eaton continues to soak up

a lot of our air time. ITT shares are now down ~10% since it reported Q1/26 earnings on

5/6, which stands out as fundamentals seem to be tracking fine.

Key Points

Honeywell saga. We were surprised by overall weakness in HON shares following the

Honeywell Aerospace (HONA) investor day June 2-3. The event was well attended

and showed off some legit technology (in our view). We received pushback on the

growth targets as low (i.e., adj. EBIT +9% CAGR and FCF +10% CAGR), but we feel they

are attainable and underlying defense assumptions could be conservative. Investing

in the supply chain to unlock growth and newer technologies could position HONA

to compete for next-gen content. LINK TO NOTE. We will get updated targets from