JPMorgan: European defense spending faces "paradigm shift"
The period during which American taxpayers subsidize European defense is coming to an end, and Europe is facing a 'paradigm shift' in military spending. Analysts predict that in the future, Europe will decide to cut defense spending, and the US will no longer compensate. This will drive sales, profits, and free cash flow of European defense stocks to rise, with valuation multiples potentially far exceeding levels of the past 20 years.