Investing.com — Cai von Rumohr, a highly respected analyst who covered the aerospace and defense industry for more than 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 covering responsibilities.
Reflecting on his long career, von Rumohr shared some key lessons and observations from his time in the industry. He noted how much the industry has changed, from the days when Boeing (NYSE:) used roller skates to deliver drawings to engineers, to today 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 in presidential elections, the impact of unexpected presidential decisions on defense spending, and the risks associated with long, fixed-price defense contracts.
Von Rumohr also discussed the importance of understanding the impact of technological changes, knowing what the market wants, and understanding consolidation strategies. He highlighted the importance of cultural fit in acquisitions and the need to keep up with emerging technologies like eVTOL (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 technological advancements in the industry. He highlighted 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 production of the ‘A380 in 2021.
Von Rumohr also noted the importance of keeping an eye on the emerging eVTOL and UAM sector. Although certification targets for eVTOLs continue to slide, he believes the technology’s carbon-neutral characteristics, better short-haul economy 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 an important figure in aerospace and defense industry analysis. His perspectives and lessons learned from his long career will serve as valuable guidance for those who continue his work.
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