Honeywell International Inc. (HON) caught a nice bump on Wednesday after announcing that Quantinuum, its quantum computing subsidiary, is gearing up for a potential IPO. Nothing gets investors more excited than the words "quantum" and "IPO" in the same sentence these days.
The Quantum Leap Forward
The aerospace and automation giant said Quantinuum plans to confidentially submit draft IPO documents to the U.S. Securities and Exchange Commission. This is the standard first step companies take when testing the IPO waters without committing publicly to specific terms.
Details remain scarce. Honeywell hasn't disclosed how many shares Quantinuum might offer or what price range they're targeting. That's typical for confidential filings. The company noted that any actual offering will depend on market conditions and how smoothly the SEC's review process goes.
The quantum computing business has been generating plenty of buzz lately as companies race to commercialize technology that could revolutionize everything from drug discovery to cryptography. Quantinuum represents Honeywell's bet on this emerging field, and spinning it out could unlock value for shareholders while giving the quantum unit more flexibility to grow.
Honeywell (HON) stock has climbed over 3% in the past year, according to market data. Investors looking for exposure to the company can also find it in the Themes Transatlantic Defense ETF (NATO). Citigroup analyst Andrew Kaplowitz maintains a Buy rating on the stock, though he recently trimmed his price target from $267 to $262.
Shopping Gets Smarter
In a completely separate development, Honeywell on Tuesday unveiled an AI-powered retail platform built in partnership with Alphabet Inc.'s (GOOG) Google Cloud and consulting firm 66degrees.
The Smart Shopping Platform is designed to make brick-and-mortar stores feel more like online shopping. It's cloud-based and connects a retailer's digital inventory data with the physical store environment to create what Honeywell calls "a more connected in-store experience."
Here's how it works: shoppers can quickly locate products, compare alternatives, and find substitutes when items are out of stock. The platform uses Google Gemini and Vertex AI to deliver real-time product information, personalized assistance, and dynamic recommendations. Think of it as bringing the convenience of browsing Amazon into your local Target.
Honeywell emphasized that retailers can implement the system without hiring massive in-house AI teams, which addresses a major pain point for companies trying to adopt these technologies. The platform essentially lets stores tap into cutting-edge AI capabilities through the cloud rather than building everything from scratch.