Honeywell, NXP Semiconductors Expand Partnership To Drive Next-Gen Aviation Tech: Retail Maintains Optimism
By Stocktwits Inc | First Published Jan 8, 2025, 11:33 PM ISTHoneywell and NXP will collaborate to advance large-area displays for next-generation cockpits, which will feature thinner, high-resolution screens designed to improve visual clarity and system efficiency.
Honeywell (HON) and NXP Semiconductors N.V. (NXPI) announced a partnership expansion that will combine the capabilities of Honeywell Anthem avionics with NXP's high-performance computing architecture.
The companies said this will enable AI-driven aerospace technology that helps improve operational efficiency for planning and managing flights.
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Honeywell and NXP will collaborate to advance large-area displays for next-generation cockpits, featuring thinner, high-resolution screens designed to improve visual clarity and system efficiency.
The companies will also explore how to simplify and streamline migrations to newer avionic technologies and extend the lifecycles of critical aviation technologies.
The collaboration between the firms will benefit Vertical Aerospace, a firm specializing in eVTOL aircraft currently testing its piloted VX4 prototype aircraft featuring Honeywell Anthem.
The collaboration, however, failed to spark much excitement on Wall Street. On Wednesday noon, Honeywell shares traded marginally in the green, while NXP shares were down nearly 1%.
On Stocktwits, retail sentiment for Honeywell dipped but still trended in the ‘bullish’ territory (73/100). Retail chatter declined but still reflected high interest in the stock.
Meanwhile, Barclays analyst Julian Mitchell lowered the firm's price target on Honeywell to $255 from $260 while keeping an ‘Overweight’ rating.
According to TheFly, the brokerage expects a slow start to the year due to sluggish organic sales growth and currency headwinds. Barclays noted that investor expectations "are moving quickly, with cyclicals again somewhat out of favor."
Last month, the company announced that its board of directors is exploring additional strategic alternatives for unlocking shareholder value, including the potential separation of its aerospace business.
The development came after activist investor Elliott Investment Management revealed a stake in the firm worth over $5 billion and suggested splitting the conglomerate into two standalone companies.
Honeywell shares have gained nearly 9% over the past year.
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