Nirgunan Tiruchelvam Head of Consumers Equity Research
September 27 2019
Defence stocks could benefit from Saudi crisis
"If you want to fight dragons, you have to become a dragon” – Friedrich Nietzsche
Nietzsche has been dead for 119 years, but he may well be describing the US reaction to the attacks on Aramco earlier this month. President Donald Trump declared last week that the US is “locked and loaded” to protect Saudi Arabia. Meanwhile, Secretary of State Mike Pompeo declared that Iran was responsible for the attacks (see here for our views on why an Iran war is unlikely).
In our view, the clear winners from the heightened tension in the GCC would include Western defence companies. There is now a dire need to strengthen Saudi’s air defence missile systems...
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