Core Points - The U.S. is initiating the largest militarization of space since the Cold War, with President Trump signing an executive order prioritizing manned lunar missions, establishing a lunar base, and developing space defense systems [1] - The executive order aims for a manned lunar landing by 2028 and a permanent lunar base by 2030, requiring the Pentagon and intelligence agencies to formulate a space security strategy [1][4] Group 1: Lunar Mission Goals - The 2028 lunar landing goal is seen as highly challenging, similar to a previous 2024 directive, with delays in NASA's Space Launch System and SpaceX's Starship affecting timelines [2] - The executive order reinforces NASA's existing goal of developing a long-term lunar base using nuclear energy, originally set during the Obama administration [2] - The Artemis program will mark NASA's first manned lunar mission under this new directive, heavily relying on the development progress of SpaceX's Starship [2] Group 2: Military Satellite Network - The U.S. Space Force's Space Development Agency announced a $3.5 billion satellite order, indicating an acceleration in military space deployment [3] - Four defense contractors will each receive contracts for 18 satellites, enhancing missile warning and tracking capabilities with near-continuous global coverage [3] - This satellite deployment is part of a strategy to launch new batches every two years, with the first batch of 154 satellites expected to achieve initial operational capability by 2027 [3] Group 3: Space Policy Coordination - The executive order restructures the national space policy coordination mechanism, placing it under the leadership of the President's Chief Science Advisor [4] - The National Space Council, previously uncertain in its future, will continue to exist under a new structure, with the President as its chair [4] - The order also calls for the Pentagon and intelligence agencies to develop a space security strategy and encourages private contractors to improve efficiency [4] Group 4: NASA Budget and Dual Goals - NASA is facing financial pressures, with a potential budget cut of about 25% from the usual $25 billion, threatening numerous prioritized space science programs [6] - The new NASA administrator supports targeting both lunar and Mars missions, reflecting Congressional pressure to focus on lunar initiatives [6] - Legislative focus has shifted back to lunar missions, despite previous discussions about prioritizing Mars exploration [6]

Group 1 - The U.S. Space Development Agency announced a $3.5 billion contract to procure a total of 72 missile warning and tracking satellites, marking the largest deal for the U.S. military's low Earth orbit constellation to date [1] - Four companies were awarded contracts: Lockheed Martin ($1.1 billion), Rocket Lab ($805 million), Northrop Grumman ($764 million), and L3 Harris ($843 million), each tasked with producing 18 satellites over the next three years [1] - The contracts involve different payloads, with Lockheed Martin focusing on missile warning, tracking, and defense satellites, while others have more specific roles [1] Group 2 - The Space Development Agency is building a "Proliferated Warfighter Space Architecture" (PWSA), which includes near-Earth orbit data relay satellites and missile warning and defense satellites [2] - Currently, the agency has deployed 8 missile warning and tracking satellites and 19 data relay satellites as part of its "Phase 0" experimental constellation [2] - The agency plans to launch an additional 28 missile warning and tracking satellites and 126 communication satellites in a 10-month operation, forming the "Phase 1" constellation [2]

Core Insights - The One Big Beautiful Bill Act, signed into law on July 4, will significantly impact markets starting in January, particularly benefiting cyclical sectors outside of tech and AI [1][2] - Société Générale's chief US equity strategist, Manish Kabra, has identified 30 stocks that are expected to benefit from the tax and regulatory breaks provided by the bill, focusing on financials, industrials, and consumer cyclicals [2] Beneficiary Sectors - Key sectors poised for growth include defense, small-caps, consumer, and energy, as they are expected to receive a boost from the new tax and regulatory policies [2] - The average forward price-to-earnings ratio for the identified stocks is 17x, with an expected earnings-per-share growth of 15% in 2026 and 2027 [3] Defense Beneficiaries - General Dynamics Corp (GD): Positioned for defense modernization funding [6] - L3Harris Technologies Inc (LHX): Benefits from investment in advanced systems [6] - Northrop Grumman Corp (NOC): Well-placed for missile defense and space programs [6] - Huntington Ingalls Industries (HII): Supported by naval modernization initiatives [6] Capex Incentive Beneficiaries - United Rentals Inc (URI): Set to gain from increased construction activity [6] - Jacobs Solutions Inc (J): Benefits from infrastructure upgrades and industrial investment incentives [6] - Trimble Inc (TRMB): Aligned with manufacturing investment push [6] - Caterpillar Inc (CAT): Benefits from accelerated depreciation and domestic production incentives [6] - Cummins Inc (CMI): Supported by R&D expensing and industrial investment [6] - Deere & Co (DE): Gains from capex incentives and domestic manufacturing support [6] - Nucor Corp (NUE): Benefits from industrial base expansion and construction demand [6] - Freeport-McMoRan Inc (FCX): Critical supplier for electrification and infrastructure projects [6] - Duke Energy Corp (DUK): Positioned for grid modernization under capex policies [7]

一位官员表示："在白宫正式宣布之前，任何关于潜在行政命令的讨论都纯属猜测。" 一位消息人士透露，拟议的命令将要求国防公司把高管薪酬与交付特定武器系统的整体绩效水平更紧密 地挂钩。 智通财经APP获悉，据三位知情人士消息，白宫正计划出台一项行政命令，将限制那些项目延误且超预 算的国防承包商支付股息、进行股票回购以及发放高管薪酬。 消息人士补充称，该命令的具体措辞仍可能发生变化。目前尚不清楚该命令将如何强制国防公司实施任 何限制。 国防承包商股价周三盘前小幅走低：洛克希德·马丁(LMT.US)下跌1.5%，L3哈里斯技术(LHX.US)下跌 1.4%，Leidos(LDOS.US)下跌0.4%，诺斯罗普·格鲁曼(NOC.US)下跌1.2%，通用动力(GD.US)下跌0.%， 雷神技术(RTX.US)下跌0.8%。 特朗普政府长期以来一直抱怨国防工业成本高昂、进展缓慢，并承诺进行广泛改革以提高武器及相关技 术的生产速度。 上月，国防部长皮特·赫格塞斯公布了五角大楼采购武器的改革方案，旨在加快采购速度并消除官僚作 风。 ...

Core Viewpoint - Morgan Stanley upgraded L3Harris Technologies to Overweight from Equalweight, raising the price target to $367 from $350 due to strong operating momentum heading into 2026 [1] Group 1: Company Positioning - L3Harris is well positioned for the future of warfare with limited disruption risk from emerging defense technology players, attributed to its platform-agnostic strategy [1] - The absence of major program disruptions at L3Harris contrasts with some peers who have faced challenges in recent quarters [1] Group 2: Financial Metrics - L3Harris is considered the most attractive among large defense primes based on projected revenue, earnings per share, and free cash flow per share growth from 2025 through 2028 [2] - Despite a positive outlook, L3Harris stock is trading at the lowest valuation in its peer group on a 2027 free-cash-flow-to-sales basis, at approximately 16x compared to a peer median of around 18x [2] Group 3: Potential Catalysts - Potential catalysts for L3Harris into 2026 include opportunities related to the Golden Dome program and improving output at Aerojet Rocketdyne [2]

Core Viewpoint - The article summarizes significant analyst rating changes that are expected to impact the market, highlighting both upgrades and downgrades across various companies and sectors [1][6]. Upgraded Ratings - Roku (ROKU): Morgan Stanley upgraded the rating from "Underweight" to "Overweight," raising the target price from $85 to $135, citing strong performance in the digital advertising market and expected robust growth in U.S. advertising spending by 2026 [5]. - Okta (OKTA): Jefferies upgraded the rating from "Hold" to "Buy," increasing the target price from $90 to $125, noting Okta's efforts to build a comprehensive identity authentication platform that can capitalize on the growing demand for intelligent agents [5]. - ServiceNow (NOW): Guggenheim upgraded the rating from "Sell" to "Neutral," stating that the current stock price is below the previously set target price, making it attractive [5]. - Rockwell Automation (ROK): Goldman Sachs upgraded the rating from "Sell" to "Neutral," raising the target price from $329 to $448, highlighting the potential operational leverage from structural price increases under new management [5]. - L3 Harris Technologies (LHX): Morgan Stanley upgraded the rating from "Hold" to "Overweight," increasing the target price from $350 to $367, based on a positive outlook for the aerospace and defense sector in 2026, with demand growth expected to outpace supply [5]. Downgraded Ratings - Zimmer Biomet (ZBH): Baird downgraded the rating from "Outperform" to "Neutral," lowering the target price from $117 to $100, citing disappointing performance expectations for 2025 and potential market share loss to Stryker's Mako orthopedic surgical robot [5]. - Capri Holdings (CPRI): Wells Fargo downgraded the rating from "Overweight" to "Hold," raising the target price from $25 to $27, indicating that previous positive factors driving the stock price have diminished, leading to increased market divergence on growth expectations [5]. - Lockheed Martin (LMT): Morgan Stanley downgraded the rating from "Overweight" to "Hold," reducing the target price from $630 to $543, while still optimistic about the aerospace and defense sector's outlook [5]. - StubHub (STUB): Citizens Bank downgraded the rating from "Outperform" to "Market Perform," with no target price set, anticipating increased market competition in 2026 that may limit market share growth [5]. - GitLab (GTLB): KeyBanc downgraded the rating from "Overweight" to "Sector Weight," with no target price set, expressing concerns over pricing power potentially hindering growth and increased execution risks due to a shift to a usage-based billing model [5]. Initiated Coverage - MongoDB (MDB): Raymond James initiated coverage with a "Market Perform" rating and no target price, noting the balanced market sentiment around the stock despite its strategic importance in the independent database platform sector [11]. - D-Wave Quantum (QBTS): Jefferies initiated coverage with a "Buy" rating and a target price of $45, highlighting the increasing market attention and application rates for various quantum computing architectures [11]. - Omnicom Group (OMC): Morgan Stanley resumed coverage with a "Hold" rating and a target price of $88, indicating that the company's merger integration efforts present both opportunities and risks [11]. - Freshpet (FRPT): Morgan Stanley initiated coverage with a "Hold" rating and a target price of $71, recognizing the long-term growth potential in the pet food industry but cautioning against short-term economic pressures [11]. - Jumia Technologies (JMIA): Craig-Hallum initiated coverage with a "Buy" rating and a target price of $18, emphasizing the company's optimized product offerings and logistics network as key drivers for achieving sustainable double-digit growth by 2030 [11].

Upgrades - Morgan Stanley upgraded L3Harris Technologies (LHX) to Overweight from Equal Weight with a price target of $367, up from $350, citing attractive aerospace and defense demand outpacing supply growth into 2026 [2] - Morgan Stanley also upgraded General Dynamics (GD) to Overweight [2] - Goldman Sachs upgraded Rockwell Automation (ROK) to Neutral from Sell with a price target of $448, up from $329, highlighting early stages of structural pricing improvements under new management [3] - Jefferies upgraded Okta (OKTA) to Buy from Hold with a price target of $125, up from $90, noting significant opportunities in building a complete identity platform [4] - Morgan Stanley upgraded Roku (ROKU) to Overweight from Underweight with a price target of $135, up from $85, anticipating a strong 2026 for U.S. advertising spend due to digital strength [4] Downgrades - Baird downgraded Zimmer Biomet (ZBH) to Neutral from Outperform with a price target of $100, down from $117, due to disappointing 2025 projections despite good initial product uptake [5] - Wells Fargo downgraded Capri Holdings (CPRI) to Equal Weight from Overweight with a price target of $27, up from $25, arguing that positive catalysts are now behind and risk/reward is more balanced [5] - Morgan Stanley downgraded Lockheed Martin (LMT) to Equal Weight from Overweight with a price target of $543, down from $630, while still viewing aerospace and defense as attractive [5] - Citizens downgraded StubHub (STUB) to Market Perform from Outperform, expecting increased competition in 2026 to limit share gains [5] - KeyBanc downgraded GitLab (GTLB) to Sector Weight from Overweight, indicating pricing power will be a headwind and execution risk is increasing due to business model changes [5]

Hi there! I’m Narek, and I’ve been in the investment world for over six years. I started out as an equity analyst at European banks, digging into reports and learning how to spot value in the markets. I’ve worked across sectors — from telecom to industry — and found that behind every financial statement is a real story. I studied in Belgium — did my bachelor’s in Antwerp, master’s at KU Leuven, and later completed an MBA in Finance at Vlerick. That journey gave me both theory and hands-on skills. Now I’m bu ...

Core Insights - The article highlights the author's extensive experience in investment banking, particularly in equity analysis across various sectors, emphasizing the importance of understanding the underlying stories behind financial statements [1]. Group 1: Background and Experience - The author has over six years of experience in the investment world, starting as an equity analyst at European banks [1]. - The author has worked across multiple sectors, including telecom and industry, indicating a broad understanding of different market dynamics [1]. - The educational background includes a bachelor's degree in Antwerp, a master's at KU Leuven, and an MBA in Finance from Vlerick, showcasing a strong academic foundation [1]. Group 2: Current Focus and Passion - The author is currently building an investment project focused on the CIS region, indicating a strategic interest in emerging markets [1]. - There is a passion for applying Western analytical tools to uncover hidden value in these markets, suggesting a unique approach to investment analysis [1].

Group 1: Aerospace Sector - The aerospace sector's valuation has risen above historical levels, with a current NTM EV/EBITDA trading at approximately 18 times, up from about 16 times at the beginning of the year, outperforming the S&P 500 index by a median premium of about 15% [2][3] - Strong air traffic has been a key driver for this valuation increase, highlighted by record passenger screenings by the TSA [2] - Despite some initial concerns regarding supply chain challenges and tariffs, the sector's valuation quickly rebounded as negative impacts did not materialize [2] Group 2: Defense Sector - The valuation multiples for major U.S. defense contractors have improved, with the current NTM P/E median at about 20 times, up from approximately 17 times at the beginning of 2025 [4] - The expansion in valuation multiples is partly due to alleviated concerns over potential defense spending cuts, as these cuts have not occurred [4] - Key government funding initiatives, including approximately $24 billion for the Iron Dome and $150 billion for overall defense, have provided support for the sector [4] Group 3: Space Sector - The space sector has experienced significant volatility, with the NTM EV/Sales median peaking above 10 times in September before dropping to about 4 times in November, and currently recovering to around 6 times [6] - Major IPOs in the sector, such as Voyager and Firefly, initially saw rapid market capitalization growth but have since declined below their issue prices due to investor caution [6] - Companies like Rocket Lab and Planet Labs are highlighted as strong performers, trading at approximately 35 times and 11 times NTM EV/EBITDA, respectively, supported by operational success and a new business model focus [6][7]