The best valuation-adjusted European and Asian defense names are probably not the obvious winners such as Saab and Rheinmetall, where much of the easy multiple expansion already happened. In Europe, Leonardo ranks first, then BAE Systems. In Asia, Korea Aerospace Industries and Hanwha Aerospace lead, followed by LIG Nex1 and Hyundai Rotem. Per @eliant_capital, this year's geopolitical developments mean European and Asian defense companies are still likely headed a lot higher. x.com  x.com 

Société Générale combines improving returns with a cheap valuation. Return on tangible equity is rising while costs and risk-weighted assets fall and BoursoBank keeps growing, yet the shares trade at 7.1x forward earnings and 0.9x tangible book. Citi reiterates its Buy rating with a new €90 target, sizing BoursoBank as a bank within a bank. x.com 

Theon International is a European defense company with excellent management, executing a roll-up strategy with huge tailwinds from European defense spending. Focused on night vision, it just bought a counter-drone company. Fundamentals improved in the latest quarter, yet the stock is down big on broad defense-market bearishness and sits within 10% of its trailing lows. x.com 

European equities are a lost cause until new leadership arrives, as stories of entrepreneurs fleeing German bureaucracy show. Saving Europe probably means breaking it first, and the time to buy is in the wreckage. x.com 

European financial stocks look badly exposed to socialism, second-order effects from Iran and collapsing credit, so the short on European financials stays. @qthomp, often a sparring partner on tech, fully agrees here, and the FT reports, via @LiveSquawk, that hedge funds are making record bets against European stocks. x.com 

Ferrovial's drop after UBS's downgrade looks overdone, as its toll roads raise prices into demand and its new $9.2B I-24 win likely beats UBS's 7% IRR model. The 407 ETR in Toronto, 48.29% owned and leased to 2098, sets its own rates: Q2 revenue rose 18% and EBITDA 24% on 3% fewer trips. Its Texas managed lanes earned high-teens IRRs, and UBS concedes I-24's pricing is better. UBS's €59 target still implies about 9% upside. Risks are higher yields, weak returns on new bids and autonomous cars. … Show more

Aerospace stocks have been unfairly punished by noise while the sector's long-term structural trends remain incredibly strong. Not even COVID could bring aerospace down, and the latest correction stems from sharp geopolitical tensions and oil price spikes. A Trump climbdown and easing tensions should soon light the fuse. x.com 

Non-ITAR defense suppliers such as Electro Optic Systems, BAE Systems, Theon and Rheinmetall are an overlooked source of alpha as Europe, Asia and the Middle East shift defense spending away from US ITAR-controlled equipment. That shift comes with huge spending, yet US-based investors misunderstand it and wrongly call defense tech dead. Eurosatory confirmed the view, and the big alpha is not in drone builders. x.com  x.com  x.com 

European defense tech clearly leads US peers in battlefield impact, getting real-world combat validation years ahead of most legacy US primes' roadmaps. US allocators still treat Europe's sovereignty buildout as a sentiment trade rather than the multi-year EU procurement policy it actually is. This answers @LarsenJensenUSA asking whether European defense tech has had a greater battlefield impact than American firms. x.com 

Defense spending and the emerging space industry will fuel aerospace and defense stocks for years. The defense ETFs are near breakout levels with bullish technicals, and M-tron Industries is a favorite. x.com