Honeywell pact Bombardier a long-term positive, says Citi

Citi analyst Andrew Kaplowitz views Honeywell’s (HON) strategic agreement with Bombardier to collaborate and for Honeywell to provide advanced avionics, propulsion and satellite communications technologies for current and future Bombardier aircraft as a long-term positive. The deal should support Honeywell’s advancement of its next generation technology and could lead to increased growth opportunity over time, the analyst tells investors in a research note. While the agreement is a drag on 2024 results, leading to the guidance cut, Honeywell sees the partnership as representing $17B in lifetime revenue opportunity, Citi points out. It believes the guidance cut could weigh on near-term sentiment but sees the agreement as contributing to favorable long-term growth potential at Honeywell. Citi keeps a Buy rating on the shares with a $244 price target