Industrial conglomerate Honeywell International (HON) has announced a new a deal with Google parent company Alphabet (GOOGL) regarding generative artificial intelligence (AI).
The deal will bring Alphabet’s AI options to Honeywell’s massive data stockpile. The deal will allow Google’s Vertex platform, and its Gemini large language learning model (LLM) to take advantage of the huge among of data that Honeywell has. Given that Honeywell has data on everything from healthcare to energy, it should help to power Google’s AI ambitions.
With this data in hand, Google will be able to start providing AI-driven insights in various sectors. That, in turn, should help drop maintenance times, improve productivity, and address a growing labor shortage in industrial operations.
Business Jets Taking Off
AI is not the only pie that Honeywell has a finger in. The company is also working in the business jet sector, a field it expects to rise substantially over the next 10 years. Honeywell’s latest Global Business Aviation Outlook—the 33rd such publication it has released—looks for substantial growth in the sector over the next 10 years.
Specifically, Honeywell expects over 8,500 new business jets to be delivered before 2033, and looks for 2025 deliveries alone to improve 12% over the same number in 2024. Honeywell is particularly focused on large jets with cabin volume over 2,500 cubic feet. Such jets are expected to account for two out of every three jets in the market going forward.
Is Honeywell Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on HON stock based on eight Buys and seven Holds assigned in the past three months, as indicated by the graphic below. After a 25.14% rally in its share price over the past year, the average HON price target of $228.14 per share implies 3.24% upside potential.
