Honeywell Aerospace Inc (HONA): Initiate at Neutral given quality products in growth markets, but below industry average KPI bench-marking

We initiate coverage of Honeywell Aerospace (HONA) with a Neutral rating and $190 12-month price target, based on 15.0X CY27 EV/EBITDA. HONA is an A&D supplier with attractive end-market exposure, though its current top-line growth is slower than peers in the supply chain. The company has long-term market position and operational improvement upside now that it is standalone. But those efforts will also require investment on the front-end which may limit more near-to-medium term profit margin expansion. Valuation multiples look low compared to peers in the A&D supply chain and over time could expand; but it is currently hard to argue for substantial upside given the relative growth metrics and after the first quarter out of the gates. Favorable end markets;