• Families of four victims from the June 2025 Air India crash have filed a lawsuit accusing Honeywell International and Boeing of negligence and product defects related to a faulty fuel cutoff switch, after a catastrophic incident killed 260 people in Ahmedabad, India.
• This lawsuit alleges both companies were aware of critical safety risks involving the aircraft component but did not alert operators or provide replacement switches, raising significant questions about risk management and disclosure obligations in the aerospace sector.
• We’ll now examine how these legal challenges and reputational risks could affect Honeywell’s investment outlook and upcoming corporate restructuring.

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Honeywell International Investment Narrative Recap

Staying invested in Honeywell right now usually means believing in the long-term value that could be unlocked by its planned split into three businesses, with the corporate restructuring as the biggest current catalyst. The recent Air India crash lawsuit draws attention to product and safety risks tied to Honeywell’s aerospace business, but its impact appears isolated for now and does not fundamentally shift the immediate restructuring narrative or the main risk of execution missteps.

Honeywell’s planned spin-off of Solstice Advanced Materials, recently announced as a tax-free distribution to shareholders, ties directly to the company’s effort to streamline operations and boost each business’s growth profile. While not directly tied to the lawsuit, this announcement reinforces that Honeywell’s leadership sees value in sharper business focus, which remains central to the investment case.

By contrast, investors should look closely at how unanticipated legal claims could increase near-term costs and affect margin forecasts, especially if...

Honeywell International's narrative projects $45.8 billion revenue and $7.5 billion earnings by 2028. This requires 4.6% yearly revenue growth and a $1.8 billion earnings increase from $5.7 billion today.

Uncover how Honeywell International's forecasts yield a $252.97 fair value, a 21% upside to its current price.

Exploring Other Perspectives

While many analysts saw Honeywell making US$7.4 billion in earnings by 2028 despite separation costs, the most cautious forecasts worry about tariff pressures and legal claims driving even more near-term headwinds. The lower-bound views remind you that analyst perspectives can vary widely, and new developments like this lawsuit may shift these expectations further. It is important to look at several different scenarios and see how they fit your view of the company’s risks.

Explore 10 other fair value estimates on Honeywell International - why the stock might be worth as much as 39% more than the current price!

Build Your Own Honeywell International Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Honeywell International research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Honeywell International research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Honeywell International's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.