JPMorgan upgraded Honeywell to Overweight, citing a disconnect between its current stock price and its sum-of-the-parts valuation. The bank sees an opportunity as the planned breakup nears and underlying business momentum builds. Core growth appears to be around 5% once portfolio noise is stripped out, despite flat 2026 headline estimates.

Aerospace is the primary driver, with orders up 22% in Q3 and a record backlog. JPMorgan expects high-single-digit growth across aerospace markets, supported by strong commercial and aftermarket trends. Margins should improve in 2026 as integration work winds down and supply chains stabilize, returning toward 2021 peak levels.

With most dilutive portfolio actions behind it, Honeywell is moving faster than guided to cut stranded costs tied to the separation. The remaining businesses show mixed but improving results, with building automation solid and Europe turning into a tailwind. JPMorgan raised its target multiple, seeing about 21% upside.