Reported 4 months ago
Bank of America Securities Senior Aerospace and Defense Analyst Ron Epstein and Citi Managing Director of Aerospace and Defense Lead Analyst Jason Gursky discuss growth outlooks for the US defense sector. Gursky advises investors to consider two key factors when it comes to US defense stocks: the impact of interest rates on taxes, government spending, and reform initiatives, as well as the risk of political dysfunction in DC affecting budget approval processes. Despite challenges, Gursky remains bullish on the sector. Epstein notes historical outperformance of defense stocks during election years and expresses optimism for the sector's forward trajectory despite initial underperformance in 2024. Both analysts see potential upside in the defense sector, with expectations of margin expansion becoming an investor narrative and opportunities ahead for Lockheed, General Dynamics, and start-up defense tech companies.
Source: YAHOO