Investing.com -- Cai von Rumohr, a highly respected analyst who has covered the Aerospace and Defense industry for over 50 years, announced his retirement from TD Cowen. He will officially retire on December 31, 2024. Gautam Khanna, his partner of 24 years, and Jack Ayers, a four-year veteran at TD Cowen, will take over his coverage responsibilities.
Reflecting on his long career, von Rumohr shared some key lessons and observations from his time in the sector. He noted how much the industry has changed, from the days when Boeing (NYSE:BA) used roller skates to deliver drawings to engineers, to the present day where advanced technologies like 3D modeling and computer-aided design are commonplace.
He also shared his thoughts on various investment considerations in the Aerospace and Defense industry. This included historical trends such as the performance of defense stocks during presidential elections, the impact of unexpected presidential decisions on defense spending, and the risks associated with long, fixed-price defense contracts.
Von Rumohr also touched on the importance of understanding the impact of technology changes, knowing what the market wants, and understanding consolidation strategies. He emphasized the importance of culture fit in acquisitions and the need to keep tabs on emerging technologies like eVTOLs (electronic vertical takeoff and landing) and Urban Air Mobility (UAM).
The retiring analyst highlighted the importance of understanding the risks and opportunities that come with technology advancements in the industry. He pointed out how Airbus missed the trend of improving aircraft engine reliability that allowed fuel-efficient twin-engine planes to fly longer point-to-point routes, leading to the end of the A380 production in 2021.
Von Rumohr also noted the importance of keeping an eye on the emerging eVTOL and UAM sector. Despite certification targets for eVTOLs continuing to slip, he believes the technology's carbon-neutral characteristics, better short-range economics, and low noise are disruptive and will continue to improve.
His departure marks the end of an era at TD Cowen, as he has been a significant figure in the analysis of the Aerospace and Defense industry. His insights and lessons from his long career will serve as valuable guidance for those who will continue his work.
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