Mid-year review 2022 - Security & Space: The essential doesn't change

The first half of the year has shown that even companies essential to global security are not safe from the macroeconomic tides. We believe investors have over-penalized cybersecurity and space industries due to their hyper-growth profiles and demanding valuations, despite extremely solid fundamentals and accelerating demand.

Bottom line

It's hard to save the world when you can't save yourself. Recent events have shown that cybersecurity and space observation (sectors we remain heavily exposed to) are integral elements of modern security.  

We are convinced that the cybersecurity investment super-cycle triggered by the SolarWinds attack is only in its infancy, while demand for space observation and traceability, boosted by the Ukrainian conflict, has only accelerated. Thanks to decreasing launch costs, the maturation of the space economy would further help keep up a virtuous self-sustaining spending cycle.

Despite market uncertainties, the long-term fundamentals and financials of the security and space sectors stay solid, and the trend toward a digitally secure and connected world remains on an upward trajectory.

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