Security & Space

This tech upgrade cycle gives confidence that the current capex and government spending momentum will last several years and that private contractors will keep delivering above-consensus revenue and earnings growth.

Space exploration could be another major source of upside for private contractors as the US plans missions to the Moon and beyond and as the new NASA Administrator is a proponent of outsourcing some of the NASA’s operations to the private sector.

Government-led space exploration will also give a boost to commercial space in the medium term.

Civil security will be in the spotlight as the Internet of Things opens the way to newcyberattacks and as smart cities become reality, pointing to strong demand for smart devices, inspection and detection systems and cyber security.