Global Aerospace & Defense

We are overweight defense, with a positive spending outlook in the US, Asia and Europe, and defensive characteristics. And with multiples having moderated, valuations are now more attractive. We are positive on aerospace, but selective—the upcycle is getting long in the tooth, but some underlying indicators (traffic, load factors) remain positive. Valuations are still towards the upper end of the up-cycle range. 

Top Picks:

  • Harris (HRS)
  • Airbus (AIR-FR)
  • Leidos (LDOS)