Citigroup analysts said concerns about the impact of President Trump's push to improve government efficiency on US defense stocks may be exaggerated. Analysts said that since Trump's victory, US defense stocks have fallen by as much as 25%, but recent comments about his desire to exert US control over Greenland and the Panama Canal suggest that he is not an isolationist. They believe that the efforts of the US government to reduce federal workers may eventually redirect more business to contractors. Citigroup expects defense contractors to make positive comments on demand from Europe and to be cautious about the United States during the transition period of the president.
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Citigroup: Overreliance on concerns about the impact of Trump's efficiency improvement actions on defense stocks
Citigroup analysts said concerns about the impact of President Trump's push to improve government efficiency on US defense stocks may be exaggerated. Analysts said that since Trump's victory, US defense stocks have fallen by as much as 25%, but recent comments about his desire to exert US control over Greenland and the Panama Canal suggest that he is not an isolationist. They believe that the efforts of the US government to reduce federal workers may eventually redirect more business to contractors. Citigroup expects defense contractors to make positive comments on demand from Europe and to be cautious about the United States during the transition period of the president.