What Honeywell International (HON)'s Gift Card Security Partnership Means for Shareholders

• Digimarc Corporation recently announced a partnership with Honeywell to deploy enhanced digital security for gift cards, aiming to help global retailers combat the rising problem of gift card fraud by integrating Digimarc’s technology into Honeywell’s handheld scanners, with rollout planned across Honeywell’s portfolio by early 2026.
• With gift card fraud losses rising very rapidly in recent years, Honeywell's adoption of Digimarc’s solution highlights its focus on practical innovation that addresses major industry pain points for retailers and consumers.
• We'll examine how Honeywell’s investment in advanced retail security technology could influence its long-term business outlook and investment narrative.

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Honeywell International Investment Narrative Recap

To own shares of Honeywell International, you need confidence in its ability to unlock value through the ongoing separation into three focused companies, while continuing to deliver reliable revenue and margin growth across industrial technology, automation, and aerospace. The recent partnership with Digimarc on retail security is an example of practical innovation, but is unlikely to materially impact the biggest near-term catalyst, which remains the portfolio separation. The largest risk continues to be execution uncertainty and one-time costs tied to the separation, which could strain margins and earnings over the next 12 months.

Among recent company announcements, the completion of Honeywell’s Advanced Materials spin-off is the most relevant to the current business transformation. This move both illustrates the company’s commitment to reshaping its operations and underscores the immediate importance of delivering on its separation plans. With the new fraud protection technology rollout highlighting Honeywell’s market adaptability and the transformation underway, execution risk around splitting into three public companies is still the focal point for most investors.

Yet, if things play out differently, investors should be aware that the costs and complexity tied to the separation, such as stranded expenses or integration hurdles, could...

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

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

Uncover how Honeywell International's forecasts yield a $241.67 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Some analysts have a much more cautious outlook, projecting Honeywell's revenue at roughly US$43.7 billion and lower profit margins by 2028. If you lean toward this more pessimistic camp, the risk that the separation amplifies cost pressures may weigh more heavily in your expectations. These views show how forecasts can differ significantly based on assumptions and why it's valuable to compare multiple perspectives as news like the Digimarc partnership continues to emerge.

Explore 4 other fair value estimates on Honeywell International - why the stock might be worth just $203.00!

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 5 key rewards and 1 important warning sign 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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