Honeywell's (HON) delivered a broad-based Q2 earnings beat, with stronger order trends following the separation of its aerospace business, improving visibility into growth in the second half of 2026, BofA said in a Tuesday note.
The brokerage said total orders rose 16% organically to $5.7 billion, with a book-to-bill ratio above 1.1x and backlog up 9%, driven by organic order growth of 24% in Process Automation & Technologies, 13% in Building Automation and 10% in Industrial Automation.
BofA said strong order momentum supports management's forecast for 4% to 6% organic growth in Q3 and Q4, with a book-to-bill ratio of about 1.1x expected in H2 to improve earnings visibility into 2027.
Honeywell raised its 2026 guidance for organic sales growth, segment margin and adjusted earnings per share, while BofA said the updated outlook remains conservative and leaves room for further upside as execution strengthens through year-end.
BofA upgraded the stock to buy from underperform and raised its price target to $265 from $205.
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