Morgan Stanley upgraded Honeywell Aerospace from equal weight to overweight with a $205 price target, implying nearly 28% upside. The investment bank believes the stock is now too cheap relative to peers, trading at a ~35% discount that is no longer justified. Shares have fallen roughly 24% over the past month and about 27% since spinning off from Honeywell in late June. Honeywell Aerospace is now the cheapest large-cap aerospace stock covered by Morgan Stanley, trading at approximately 16.8 times estimated free cash flow and 11.4 times expected enterprise-value-to-EBITDA for 2028. Shares climbed more than 2% following the upgrade.
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