Global Aerospace & Defense

We are overweight defense, with a positive spending outlook in the US, Asia and Europe. Although multiples have expanded, we still see some value opportunities. We are market weight aerospace but more positive than earlier this year, given stronger than expected airline traffic growth. Valuations have expanded, but are still within the normal range for the aero sector in an up-cycle.

Top Picks:

  • Raytheon (RTN)
  • Airbus (AIR-PAR)