How Honeywell’s Data Center Power Management Collaboration (HON) Has Changed Its Investment Story

• Honeywell announced a global collaboration with LS ELECTRIC to develop and market integrated hardware and software solutions that streamline power management for data centers and building operators, aiming to boost operational efficiency and resiliency.
• This partnership signals Honeywell’s intent to become a one-stop supplier for both building automation controls and electrical power management, enhancing its offering for the fast-growing data center market.
• We’ll explore how Honeywell’s move to integrate power management and automation may influence its long-term investment narrative.

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Honeywell International Investment Narrative Recap

Owning Honeywell International often comes down to believing in the company’s ability to position itself at the center of digital transformation for critical infrastructure, especially as demand for automation and resilient energy solutions rises. While the recent LS ELECTRIC partnership broadens Honeywell’s reach in data center power management, it’s unlikely to materially change the immediate catalyst of the planned three-way company separation or reduce key execution risks tied to that breakup in the near term.

The most relevant announcement that connects back to this collaboration is Honeywell’s filing for the spinoff of Solstice Advanced Materials. Both developments underscore a focus on sharpening each business’s identity and pursuing industry-leading growth segments; yet, the complexity of separation costs remains a short-term concern for long-term value creation.

Yet, on the other hand, investors should be aware that separation into standalone companies brings…

Read the full narrative on Honeywell International (it's free!)

Honeywell International's outlook anticipates $45.8 billion in revenue and $7.5 billion in earnings by 2028. This scenario assumes a 4.6% annual revenue growth rate and a $1.8 billion increase in earnings from the current $5.7 billion level.

Uncover how Honeywell International's forecasts yield a $252.97 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Some analysts are far more cautious, expecting revenues of US$43,700,000,000 by 2028, because separation costs and tariff issues could weigh on Honeywell’s progress. With opinions ranging widely, consider reviewing several viewpoints to decide what you believe could matter most as the story shifts.

Explore 8 other fair value estimates on Honeywell International - why the stock might be worth 10% less than the current price!

Build Your Own Honeywell International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Honeywell International research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Honeywell International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Honeywell International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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