The company's growing software business and strong aerospace franchise could bolster profits, sending the stock to $154 per share.
Billionaire Dan Loeb of hedge fund Third Point suggested in April that Honeywell spin off its aerospace division in a move that could generate more than $20 billion in shareholder value. Honeywell CEO Darius Adamczyk said he'll decide on the aerospace program's future by this fall.
Barron's said Honeywell will likely keep its aerospace unit as profits increase and expenses decline. Shrinking capital spending could also help the New Jersey-based company increase acquisitions, share repurchases and dividend growth.
Honeywell stock traded up nearly 1% premarket.
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