According to CNBC, Morgan Stanley upgraded Honeywell Aerospace to overweight from equal weight and set a $205 price target on the stock, implying nearly 28% upside from Tuesday's close. Analyst Kristine Liwag said the shares look cheap despite concerns about revenue and EBIT growth, limited margin expansion, weaker free cash flow conversion and lower next-generation Commercial original equipment content, and she said the valuation now more than offsets those risks. Honeywell Aerospace shares have fallen roughly 24% in the past month and are down about 27% since June 29, when the company was spun out from Honeywell. The stock trades at about 16.8 times estimated price-to-free cash flow and roughly 11.4 times expected enterprise-value-to-EBITDA for 2028, making it the cheapest large-cap aerospace stock covered by Morgan Stanley. Shares rose more than 2% after the upgrade.