BofA notes that following press reports on Google’s (GOOGL) quantum chip last week, the firm has been getting increasing investor interest in Honeywell’s (HON) quantum computing business called Quantinuum, in which Honeywell owns a roughly 54% stake after having previously combined its Quantum Solutions business with Cambridge Quantum in 2021. Recently, quantum computing shares have had a strong run and price-to-sales ratios are at all-time highs of 200-times, which could make Honeywell more likely to pursue monetization. Given investors have historically given Honeywell no credit for Quantinuum in its sum-of-the-parts, the firm views a potential monetization of the stake as a positive for Honeywell, on which it keeps a Neutral rating.
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