desk
Share
News Topical, Digital Desk : Brokerage firm Citi has expressed confidence in Hindustan Aeronautics Limited (HAL) shares. The firm has maintained a 'Buy' rating on the stock. The company has given a target price of ₹5,560 per share for HAL, which suggests an upside of approximately 30% from current levels.
Citi believes that the technical agreement between HAL and GE Aerospace to co-produce the F414 jet engine in India could be a significant medium-term trigger. This agreement is considered a major milestone following the MoU signed in 2023.
According to the report, commercial negotiations between the two companies are expected to be completed between December 2026 and March 2027. The F414 engines will be used in the Tejas Mk2 program, which includes over 100 aircraft. These engines are also expected to be used in the first two squadrons of the AMCA Mk1. While Citi also stated that the timeline for commercial finalization and the risks associated with project execution will need to be monitored, overall, the deal represents a positive medium-term opportunity for HAL.
Previously, GE Aerospace also confirmed that significant progress has been made in the partnership after nearly three years of negotiations. According to the company, the technology agreement is a major step towards strengthening India-US defense cooperation and further solidifies the more than four-decade-old relationship with HAL.
--Advertisement--
