Honeywell (HON) Settles Litigation with Flexjet, Extends Engine Maintenance Agreement to 2035
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Settlement Agreement: Honeywell and Flexjet have reached a settlement to resolve litigation stemming from disputes over engine maintenance services, agreeing to extend their maintenance agreement through 2035, thereby eliminating legal risks and restoring their partnership.
- Litigation Background: Flexjet sued Honeywell in 2023, accusing the company of breaching the engine maintenance services agreement and seeking damages for delayed repairs, while Honeywell cited supply chain issues during the pandemic as a reason for its inability to fulfill the contract.
- Financial Impact: Although the specific financial terms of the settlement were not disclosed, Honeywell previously indicated that a comprehensive settlement would include approximately $470 million in one-time cash payments, with an expected impact of about $310 million on Q4 sales and $370 million on operating income.
- Strategic Significance: This settlement not only helps Honeywell eliminate legal disputes but also enhances its stability in the aircraft engine maintenance market, ensuring a long-term partnership with Flexjet and boosting market confidence.
Analyst Views on HON
Wall Street analysts forecast HON stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for HON is 235.07 USD with a low forecast of 195.00 USD and a high forecast of 262.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
8 Buy
6 Hold
1 Sell
Moderate Buy
Current: 215.070
Low
195.00
Averages
235.07
High
262.00
Current: 215.070
Low
195.00
Averages
235.07
High
262.00
About HON
Honeywell International Inc. is an integrated operating company serving a range of industries and geographies around the world, with a portfolio that is underpinned by its Honeywell Accelerator operating system and Honeywell Forge platform. The Company provides actionable solutions for aerospace, building automation, industrial automation, process automation, and process technology. The Company supplies products, software, and services for aircrafts that it sells to original equipment manufacturers (OEM) and other customers in a variety of end markets. The Company’s portfolio of solutions and services is used in buildings worldwide for fire prevention, controls, access and security. Its offerings serve as the fundamental building blocks of industrial automation. Its sensor technologies and value-added smart edge devices offer connectivity across a variety of sensing and measurement applications. The Company offers a comprehensive portfolio of end-to-end process automation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
