Honeywell International Posts Q1 Beat: Here's What Could Affect Performance In H2, Analyst Raises Price Target

Honeywell International Inc's HON stock tanked even after the company reported on Tuesday better-than-expected quarterly results.

The company posted solid quarterly results and raised its 2025 guidance, despite a contingency contribution for net tariff costs and demand risk in the back half of the year, according to RBC Capital Markets.

The Honeywell International Analyst: Analyst Deane Dray maintained a Sector Perform rating, while raising the price target from $211 to $226.

The Honeywell International Thesis: The company reported its operating profits 4% higher than expectations, driven by a better-than-expected performance by Aero, Building Automation and ESS, Dray said in the note.

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Honeywell International set its second-quarter outlook 4% ahead and raised its full-year earnings guidance despite a contingency of 18 cents per share, he added.

"The tariff contingency is a top-down view and there still has been no discernible falloff in demand or broad-based project delays/capex cuts," the analyst wrote.

Management confirmed a tax-free spinoff of Aero from Automation, Dray stated. It was also indicated that active share buybacks and further acquisitions, he added.

"China tariffs represent 60%-70% of tariff headwind, with the biggest hit to Industrial Automation," the analyst further wrote.

HON Price Action: Shares of Honeywell International had declined by 0.48% to $210.46 at the time of publication on Wednesday.

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• Honeywell Q1: Strong Growth In Aerospace Offsets Industrial Dip, Narrows Out

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