Aerospace giant Boeing (NYSE:BA) is set to open a 43-acre facility, its largest outside the U.S., in India.
Boeing has set a target of ~$1.25 billion per year in sourcing from India and is investing nearly $200 million in the complex near Kempegowda International Airport in India. Earlier this year, Boeing announced a $100 million infrastructure investment to train pilots in the country.
Furthermore, the company is also planning to expand the existing fleet of 12 P-8I aircraft in service with the Indian Navy to 18. The move is expected to result in an investment of about $1.5 billion and lead to new indigenization opportunities in the Indian aerospace and defense sector.
With a burgeoning population, India, as well as China, remain key markets for Boeing. Economic gains and rising domestic travel are expected to keep airplane demand buoyant. In China, Boeing anticipates a demand for 8,560 new commercial planes over the next 20 years.
Is Boeing a Buy, Sell, or Hold?
Overall, the Street has a consensus price target of $261.15 on Boeing, alongside a Moderate Buy consensus rating. This points to a 29% potential upside in the stock, on top of a 38% price gain over the past year.
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