Yahoo Finance Analysis: US FY2027 Defense Budget May Reach $1.15 Trillion, Analysts Bullish on Honeywell Aerospace (HONA)
Yahoo Finance analysis indicates that the proposed military spending in the US FY2027 National Defense Authorization Act will reach a record $1.15 trillion, driven by geopolitical pressures. Against this backdrop, analysts are optimistic about the investment prospects of Honeywell Aerospace (NASDAQ: HONA). Since its spin-off from Honeywell Technology in late June, the company's stock price has fallen by over 21%, trading at approximately $157 as of September 11. Although Q2 revenue grew 5% year-over-year to $4.5 billion, earnings per share declined 71% year-over-year to $0.78, and the full-year organic growth guidance was lowered from 7%-9% to 4%-5%, primarily due to spin-off costs. The average analyst target price is $213, representing approximately 35% upside from the current stock price. Honeywell Aerospace's Q2 backlog increased 9% to $18.2 billion, with an additional $15 billion in new contracts, mainly benefiting from defense modernization programs and military avionics upgrades.
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