Boeing Co (BA) said on Wednesday that it intended to build on its existing investments in India in fields such as defense supply chains and manufacturing.
The US company is offering its F/A-18 fighter jet for sale to India’s military and it said the selection of the aircraft would help increase investments in the country’s defense sector.
“Boeing anticipates $3.6 billion in economic impact to the Indian aerospace and defense industry over the next 10 years, with the F/A-18 Super Hornet as India’s next carrier-based fighter,” the world’s second-largest plane maker said in a statement, cited by Reuters.
According to the SIPRI Arms Transfers Database, India is among the largest arms importers worldwide, as it spent $12.4 billion between 2018 and 2021.
Boeing shares closed higher for a second consecutive trading session in New York on Wednesday. It has also been the sharpest single-session gain since August 10th. The stock went up 2.21% ($3.53) to $163.60, after touching an intraday high at $164.10. The latter has been a price level not seen since August 19th ($166.84).
The shares of Boeing Company have retreated 18.74% so far in 2022 compared with a 13.12% loss for the benchmark index, S&P 500 (SPX).
In 2021, Boeing Co’s stock went down 5.95%, thus, it again underperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 11 out of 13 surveyed investment analysts had rated Boeing Co’s stock as “Buy”, while 2 – as “Hold”. The median price target on the stock stands at $213.33.