U.S. President Donald Trump plans to boost defense sales to India, including Lockheed Martin’s (LMT) maligned F-35 stealth fighter aircraft, following a meeting with Prime Minister Narendra Modi. The deal, which came after Modi met Trump in Washington for talks on trade and security, will also see the co-production of General Dynamics’ (GD) Stryker armored vehicles.
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“Starting this year, we’ll be increasing military sales to India by many billions of dollars,” Trump told a joint news conference. “We’re also paving the way to ultimately provide India with the F-35 stealth fighters.”
India though might smart at the cost of upkeep of the F-35, which has been criticised by Elon Musk, who is heading up the new Department of Government Efficiency.
GD’s Strykers Part of Talks
Trump and Modi agreed the U.S. would expand defense sales and co-production with India to strengthen cooperation.
This includes plans this year for new procurements and co-production arrangements for Javelin Anti-Tank Guided Missiles and Stryker Infantry Combat Vehicles in India.
The Stryker, a family of eight-wheeled armored fighting vehicles, was demonstrated to the Indian Army last year and it plans to purchase several hundred from manufacturer GD. It was thought ahead of Modi’s visit that a co-production agreement would be reached.
Meanwhile the Javelin anti-tank missile is developed and produced by Raytheon (RTX) and Lockheed Martin.
The two countries also expect completion of procurement for six additional P-8I Maritime Patrol aircraft made by Boeing (BA) to enhance India’s maritime surveillance reach in the Indian Ocean Region following agreement on sale terms.
The leaders announced plans to sign this year a new ten-year Framework for the U.S.-India Major Defense Partnership in the 21st Century.
Is Lockheed Martin Stock a Buy?
Wall Street’s consensus rating for LMT stock is a Moderate Buy, based on six Buys and eight Holds. The average analyst price target of $533.56 implies upside potential of about 22% from current levels.
