BNP Paribas Equity Research initiated coverage of Honeywell Aerospace with a Neutral rating and a $245 price target, implying roughly 11% upside from the stock's June 29 closing price of $220.20. Analyst Matt Akers said the company retains strong positions across multiple aerospace markets and that investors may be overlooking the value of its defense business, but he expects profit growth to trail many aerospace peers over the next several years. BNP estimates that large commercial avionics aftermarket revenue accounts for just 5% to 10% of Honeywell Aerospace's business, while the company has maintained or improved its competitive position in auxiliary power units, business jet avionics and business jet engines. Defense-related products are expected to account for approximately 41% of Honeywell Aerospace's 2025 sales, and much of its defense portfolio is derived from commercially developed technologies with significant international exposure. Despite those strengths, BNP cited product mix changes, increased investment spending and lingering market-share pressures as factors likely to weigh on earnings growth through at least 2027.
Honeywell Aerospace IncBNP Paribas initiates with Neutral rating and $245 target, citing profit growth trailing peers
The Boeing Company
BNP Paribas SA