Honeywell's Undervalued Stock: A Buy Rating Led by Quantum Computing Potential and Market Revaluation

Bank of America Securities analyst Andrew Obin maintains a Buy rating for Honeywell International's stock due to its undervalued quantum computing potential and market re-rating. Honeywell's 54% stake in Quantinuum, a quantum computing firm, could be worth around $10 billion, contributing to the stock's undervaluation. As the quantum computing sector grows, investors see an opportunity to buy Honeywell stock at a discount.

Honeywell International Inc. (NASDAQ: HON) stock saw a 1% increase on Wednesday following a Bloomberg report that its quantum computing venture, Quantinuum, is exploring a fundraising round at a valuation of approximately $10 billion [1]. According to sources familiar with the matter, Quantinuum is in discussions with existing investors and potential new backers about raising capital in the hundreds of millions of dollars. The reported $10 billion valuation would represent a significant increase from the $5 billion pre-money valuation achieved during its January 2024 funding round, when the company raised $300 million in a round led by JPMorgan Chase & Co. (NYSE: JPM) [2].

Nvidia Corp. (NASDAQ: NVDA), the semiconductor giant, is reportedly among the companies approached about potentially investing in Quantinuum, though deliberations are ongoing with no certainty of reaching an agreement [1]. Quantinuum was formed in 2021 through the merger of Cambridge Quantum and Honeywell Quantum Solutions [2].

Bank of America Securities analyst Andrew Obin maintains a Buy rating for Honeywell International's stock due to its undervalued quantum computing potential and market re-rating [3]. Honeywell's 54% stake in Quantinuum could be worth around $10 billion, contributing to the stock's undervaluation. As the quantum computing sector grows, investors see an opportunity to buy Honeywell stock at a discount.

References:
[1] https://www.investing.com/news/stock-market-news/honeywell-stock-rises-after-quantinuum-reportedly-seeks-10-billion-valuation-93CH-4202749
[2] https://www.ainvest.com/news/quantinuum-seeks-10b-valuation-nvidia-led-funding-2508/
[3] https://www.nasdaq.com/articles/quantum-computing-stock-just-made-ai-breakthrough