Solid outlook, but limited upside. Initiate In Line

研报英文原文证据摘录

Solid outlook, but limited upside. Initiate In Line

Industrials | Multi-Industry, Electrical Equipment & Aerospace

July 13, 2026

Honeywell Aerospace Inc Alexander Virgo Gustavo Gonzalez 44 20 7847 3520 212-653-8998

HONA | $220.75 Alexander.Virgo@evercoreisi.com Gustavo.Gonzalez@evercoreisi.com

In Line | Target Price/Base Case: $250.00 Kriti Vardineni

Initiating Coverage 212-801-3882

Kriti.Vardineni@evercoreisi.com

Solid outlook, but limited upside. Initiate In

Company Statistics

Line Market Capitalization (M) $69,952

52-Week Range $200.00 - $297.50 We initiate coverage of Honeywell Aerospace with an In Line rating

and $250 Target Price. We like the growth opportunity but are

cognisant that the near-term pressure from increased investment likely

keeps incremental margins <30% until the latter part of the decade. Earnings Summary

HONA still offers best-in-class margins (ex-TDG (not covered)) despite

2025 2026E 2027E this, but the benefit of the growth such investment should yield is the

Sales (M) Q1 .. $4,352A .. proof point in the thesis. We think some track record needs to be built

Q2 .. $4,571 .. before a premium valuation to peers can be justified, and as such value

Q3 .. $4,757 ..

Q4 .. $5,102 .. the stock in line with peers’ average (i.e. on ~20x 2027E EV/EBITA vs

FY $17,404 $18,781 $20,190 currently c18x), leaving limited upside to our PT. Hence our In Line

EBITDA (M) Q1 .. $1,172A .. rating.

Q2 .. $1,127 ..

What we like: We like the core underlying growth outlook, with solid Q3 .. $1,206 ..

Q4 .. $1,204 .. MSD underpinning all three segments. HONA’s ability to outgrow the

FY $4,377 $4,689 $5,024 underlying growth across OE and AM in commercial feels well

EPS Q1 .. $2.21A .. supported by both pricing and initiatives such as RMU (retrofit,

Q2 .. $2.36 ..