Honeywell Cuts Matthey Deal by $640M, Baird Lifts Target to $240
Honeywell cut its Johnson Matthey catalyst acquisition price by $640 million to $1.8 billion. Baird raised its price target to $240 from $207 after Q4 organic sales climbed 11% (6% excluding Bombardier), EPS reached $2.90, and the company guided 2026 sales of $38.8–$39.8 billion with EPS of $10.35–$10.65.
1. Acquisition Price Revision
Honeywell cut the price of its Johnson Matthey catalyst acquisition by $640 million to $1.8 billion, reflecting revised transaction terms.
2. Q4 Performance Highlights
In Q4, Honeywell delivered 11% organic sales growth (6% excluding the Bombardier agreement) and adjusted EPS of $2.90, returned $900 million to shareholders, repaid $2.3 billion of debt, repurchased stock, and funded $2.2 billion of acquisitions.
3. Baird Target Raise and 2026 Guidance
Baird raised its price target to $240 from $207, citing improved operating performance and the on-schedule Aerospace separation. Honeywell guided 2026 sales of $38.8–$39.8 billion, adjusted EPS of $10.35–$10.65, and free cash flow of $5.3–$5.6 billion.