Morgan Stanley-Thematics Venture Vision Defence - Public vs Private-107767467

MApril23,202401:00PMGMTGlobalFoundationThematicsMorganStanley&Co.Internationalplc++44207425-0840+44207425-9902VentureVision:Defence-PublicEdwardStanley+44207677-0560vsPrivateEquityStrategistAfteraweekontheroad,wefoundthatinvestorsareclearlyEdward.Stanley@morganstanley.comhungryforanewtheme.Defenceissatiatingthedemand.Thetop5privatedefencecontractors'valuationsnowmakeupc3%MatiasOvrumofthemarketfromastandingstartin2017;muchoftheprivatefundinginautonomousweaponsanddronetech.EquityStrategistMatias.Ovrum@morganstanley.comIfyouhavefoundourworkhelpfulorthought-provokingonVenture,TechDiffusion,Longevity&Decarbonisationoranyotherthemespleasetake2minutestovoteinRossLaw,CFAtheongoingIIsurvey.EquityAnalystAlthoughinvestorsremainreceptivetotheAItradeanditsbroadeningoutRoss.Law@morganstanley.com(notablyinpoweranddatacentres),theyarenonethelesslookingforthenext(non-AI)theme.We'rekeepingoureartotheground.AcrosstwoweeksofOurVentureVisionweeklieslookat(1)early-marketingwemakethreeobservations:stagecross-themefundingpatterns;(2)relativevaluationsbetweenthemes;(3)public•Defenceismentionedwithincreasingregularityandurgencyascountriesversusprivatevaluations;(4)theresultingincreasetheirdefencespendingpledges.InourmeetingswithAmericananomalieswithincertainthemes.PleaseletusandEuropeaninvestors,opportunitieswithinAerospaceandDefence...