Honeywell International Inc. (NASDAQ: HON) trades near $209/share, down about 4% over the past year as softer industrial spending and mixed macro trends pressured results. Still, analysts expect steady earnings growth supported by the company’s strong balance sheet, disciplined execution, and exposure to long-term themes in automation and aerospace.
Recently, Honeywell announced plans to acquire CAES Systems Holdings, a move that expands its defense electronics and space portfolio. The company also introduced new industrial automation software aimed at helping manufacturers digitize operations and cut emissions. These initiatives show that Honeywell is still innovating and positioning itself for growth despite a challenging macro backdrop.
This article explores where Wall Street analysts think Honeywell could trade by 2027. We’ve gathered consensus forecasts and valuation models to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
Honeywell trades near $209/share today. The average analyst price target is $249/share, pointing to about 19% upside over the next year. Forecasts remain fairly consistent across the Street:
- High estimate: ~$290/share
- Low estimate: ~$210/share
- Median target: ~$250/share
- Ratings: 12 Buys, 1 Outperform, 11 Holds
For investors, this reflects a modest upside outlook. Analysts see Honeywell as a steady performer rather than a breakout story. The narrow spread of estimates shows conviction in its stable earnings base but also signals limited excitement until growth in automation or aerospace accelerates. The stock is viewed as a dependable industrial compounder that could outperform if global manufacturing activity strengthens.
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Honeywell: Growth Outlook and Valuation
The company’s fundamentals look resilient and balanced:
- Revenue growth: ~5% annually through 2027
- Operating margin: ~23.7%
- Forward P/E: ~20×, slightly below peers
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 20× forward P/E suggests ~$263/share by 2027
- Total return: +26%, or about 11% annualized
These figures imply Honeywell can deliver steady, double-digit annualized returns through consistent earnings growth and strong margin control. For investors, the takeaway is that Honeywell’s valuation leaves room for solid compounding rather than explosive gains. Its reliable cash flow, healthy balance sheet, and exposure to automation and aerospace make it a quality-focused stock suited for patient investors seeking stability over speculation.
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What’s Driving the Optimism?
Honeywell continues to stand out for its strong positions in aerospace systems, automation, and energy efficiency solutions. These segments provide steady demand even as broader industrial activity fluctuates. The company’s ability to maintain high operating margins and generate consistent free cash flow highlights disciplined management and operational strength.
Recent acquisitions and software investments are also expanding Honeywell’s exposure to digital industrial technology, giving it an edge as factories and infrastructure modernize. For investors, these strengths suggest Honeywell can sustain healthy earnings and gradually compound value through both innovation and stability.
Bear Case: Slower Growth and Limited Re-rating
Despite its quality, Honeywell’s growth remains modest compared to faster-moving peers. A slowdown in industrial spending or aerospace orders could pressure results, while rising input costs might limit margin expansion. Trading near 20× forward earnings, the stock already reflects a fair amount of optimism.
For investors, the risk is not dramatic downside but rather muted returns if growth stays around mid-single digits. Without a meaningful pickup in revenue momentum, Honeywell may continue to perform steadily but without major re-rating potential.
Outlook for 2027: What Could Honeywell Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 20× forward P/E suggests Honeywell could trade around $263/share by 2027. That implies roughly 26% total upside, or about 11% annualized returns.
For investors, this points to a steady and predictable compounding story rather than a high-growth opportunity. Honeywell’s combination of durable margins, disciplined capital allocation, and growing automation exposure make it a dependable holding for those seeking consistent performance with limited volatility.
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