1. Honeywell appointed Marc Steinberg from Elliott Investment Management to its board. 2. Elliott believes a breakup could increase Honeywell's stock by 51% to 75%. 3. Honeywell plans to split into three companies by early 2025. 4. Current stock trades at 22 times 2025 earnings estimates, lower than peers. 5. Share price stability observed since Elliott's stake announcement.
The anticipated breakup could unlock significant shareholder value, similar to prior cases like GE's restructuring. Historical examples show such moves can enhance stock performance as seen in previous split events like United Technologies spinning off Otis and Carrier.
The discussion of a significant breakup and appointment of an activist board member indicates a strong shift in corporate strategy, likely impacting investor perception and stock valuation positively.
The long-term stock uplift is expected post-breakup, potentially realized by 2026. Historical precedents indicate value realization often extends beyond the immediate announcement.