10:58 AM EST, 12/03/2024 (MT Newswires) -- Honeywell International's ( HON ) deal with Canadian aircraft manufacturer Bombardier is neutral-to-slightly-positive for the company, RBC Capital Markets said in a note e-mailed Tuesday.

Late Monday, the industrial conglomerate agreed to provide avionics, engines and satellite communications to Bombardier jets. The companies also settled all pending litigation between them. As a result of the agreement, Honeywell ( HON ) had to recognize customary "launch contributions," and the company reduced its outlook, RBC said.

"These launch agreements are generally complex, but given Bombardier is dropping ongoing legal matters, it is likely that Honeywell ( HON ) had conceded some favorable terms," RBC analysts, including Co-Head of Global Industrials Research Deane Dray, said in the note.

Honeywell ( HON ) said "the guidance cut should have limited impact to any previously published 2025 estimates," the note added.

RBC kept its price target on the Honeywell ( HON ) stock unchanged at $253, with a sector perform rating.

The company's shares were down 2.4% in recent trading.

Price: 224.42, Change: -5.54, Percent Change: -2.41