01:06 PM EST, 01/14/2025 (MT Newswires) -- Honeywell International ( HON ) could soon disclose plans to become two companies, with the move that may be announced as soon as early February described as a "welcome but not surprising development" for the industrial conglomerate, UBS analysts said in a Monday research note.

Citing people familiar with the matter, Bloomberg reported Monday that Honeywell ( HON ) has decided to spin off its aerospace unit into a stand-alone company, conceding to calls by activist investor Elliott Investment Management to split the industrial conglomerate into its aerospace and automation component businesses. A Honeywell ( HON ) spokesperson late Monday told MT Newswires the company does not comment on market rumors or speculation.

UBS analysts said the news was consistent with their positive view of Honeywell ( HON ) and likely supports a double-digit increase for its share price on a percentage basis based on a sum-of-the-parts valuation.

Honeywell ( HON ) would also benefit from a simpler business model, they said, with the new companies enjoying an improved focus and the prospect of meaningful growth. The analysts also agreed with Elliott that investors will likely value two companies above the price Honeywell ( HON ) now fetches as a single entity.

UBS currently has a buy rating on Honeywell ( HON ) stock with a $289 price target.

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