Driven by billion-euro investment plans for defense and security, shares such as Rheinmetall, Hensoldt and Leonardo have only known one direction for weeks: steeply upwards. But in the slipstream of the clear winners, there are other companies that are benefiting from rising defense spending.
Kitron is an intimate connoisseur of the electronics services sector. The roots of the company, which is headquartered in Billingstad, Norway, go back to the early 1960s. The electronics service provider operates not only in the areas of armaments and defense, but also in the connectivity, industry, electrification and medical devices segments. However, the defense sector offers the greatest growth opportunities for Kitron. The company's customers here include industry giants such as Thales and Kongsberg (see slide).
Recently, Kitron has already been able to score points with market participants in this area with increasing order momentum. In view of the immense budgets to be made available by Europe and the associated nations for armaments and defense, this trend should continue in the current year and beyond.
CONCLUSION
The story surrounding Kitron is picking up speed. However, the stock has not yet performed as well as the shares of Rheinmetall, Hensoldt & Co. Setbacks remain buying opportunities for courageous investors who want to participate in rising security and defense spending in a slightly different way.
Kitron secures €30 million contract to manufacture advanced optics for the UAV and drone market
https://finance.yahoo.com/news/kitron-secures-eur-30-million-095200176.html
Kitron is likely to be a winner in the armor -
Norne Securities raises target price for Kitron to NOK 55 (43) and reiterates Buy - BN 07.03
Kitron wins contract to supply electronics for Kongsberg Group unit's Joint Strike Missile
Kitron produces the electronics for the Kongsberg Group's naval strike missile
Kitron receives order worth NOK 46 million from Thales
