Honeywell Aerospace shares plunge 26% as supply woes trigger forecast cuts
Honeywell Aerospace shares plunged as much as 26% on Thursday after supply-chain problems prompted the company to cut its annual sales target and issue a weaker-than-expected profit forecast, Reuters reported.The stock was last down about 20% and headed for its worst session since its recent listing, if the losses held.The aerospace supplier, which began trading on the Nasdaq about a month ago following its spinoff from Honeywell, said supply constraints forced it to prioritise deliveries to Boeing and Airbus over its higher-margin aftermarket business.Honeywell Aerospace lowered its 2026 organic sales-growth outlook to 4%-5% from 7%-9% previously.The company expects adjusted earnings of $7.60-$7.90 per share for the year, significantly below analysts’ average estimate of $8.86, according to LSEG.JP Morgan reduced its price target from $255 to a Street-low $235, saying the stock’s “discount to peers is likely to widen following these results”. The brokerage added that repeated disappoi...