Here's What Honeywell's Big Breakup Means to Investors
Honeywell International (NASDAQ: HON) is finally breaking up. The rationale for the breakup makes perfect sense, and it could release a lot of value for investors. Still, does that make the stock a buy right now? Here's what you need to know before deciding on the stock.Having previously announced the spinoff of its advanced materials business (due in late 2025 or early 2026), Honeywell's management decided to take the next step and separate its automation and aerospace businesses in the second half of 2026. As of yet, it's not clear which company will be the "RemainCo."The breakup is pretty much along the lines that activist investors have been pushing for. Indeed, Elliott Investment Management pushed for change at Honeywell, arguing that a breakup could lead to a value per share between $321 (base case scenario) and $383 by the end of 2026 -- figures representing a 54% and an 84% increase on the price at the time of writing. Continue reading
Honeywell International (NASDAQ: HON) is finally breaking up. The rationale for the breakup makes perfect sense, and it could release a lot of value for investors. Still, does that make the stock a buy right now? Here's what you need to know before deciding on the stock.
Having previously announced the spinoff of its advanced materials business (due in late 2025 or early 2026), Honeywell's management decided to take the next step and separate its automation and aerospace businesses in the second half of 2026. As of yet, it's not clear which company will be the "RemainCo."
The breakup is pretty much along the lines that activist investors have been pushing for. Indeed, Elliott Investment Management pushed for change at Honeywell, arguing that a breakup could lead to a value per share between $321 (base case scenario) and $383 by the end of 2026 -- figures representing a 54% and an 84% increase on the price at the time of writing.
