The TASE Aerospace and Defence Opportunity

The TASE Aerospace and Defence Opportunity

The TASE Aerospace and Defence Opportunity

The aerospace and defence sector is experiencing a remarkable surge, with companies listed on the Tel Aviv Stock Exchange (TASE) playing a pivotal role. The TASE has become a nurturing ground for aerospace and defence companies, reflecting Israel’s strategic emphasis on technological advancements in these fields. Key players range from established giants to innovative startups.

Due to the robustness and strategic importance of this sector, it attracts considerable interest from both domestic and international investors. The consistent demand for advanced defence solutions ensures a steady flow of capital into these companies, making them key components of the TASE.


Why is Aerospace and Defence Important?

Israel places a high priority on security due to its geopolitical situation, which naturally extends to the development of advanced defence technologies and systems – critical for maintaining national security. Companies in this sector often receive significant governmental support, including financial incentives and contracts.

Israel invests a significant portion of its GDP in research and development, a significant proportion (see exhibit below) of which is directed towards military and aerospace technologies. This investment fuels continuous innovation within the sector, leading to the growth and expansion of companies involved. The country’s numerous strategic global alliances facilitate the export of military and aerospace technologies. Such innovations over time feed into civil markets too.

In exhibit 1 below, we chart the military expenditure in 2023 of countries as a percentage of their Gross Domestic Product (GDP). What is important to note is that although the US spent the most on its military in 2023 ($916bn), it ranks below Israel in terms of military spending as a percentage of GDP (3.5 %, 5.3%, respectively). Israel spent $27.5bn on its military in 2023A and had a GDP of $523.7bn (for reference, the US GDP was ~$27.4trn in 2023A). Ukraine is a clear anomaly in 2023 for very well publicised reasons.


Exhibit 1 – Military Expenditure as a % of GDP (highest spending countries) 2023

Military Expenditure as a % of GDP (highest spending countries) 2023Sources: ACF Equity Research Graphics; SIPRI – Trends in World Military Expenditure 2023.

Notes: *Ukraine ranked the highest as a direct result of the Russian invasion in February 2022.


Innovations Driving Growth on the TASE

Israel has been recognized globally for its innovation in technology, particularly in cybersecurity, unmanned systems (e.g unmanned aerial vehicles – UAVs), and missile defence and supporting technologies.


  • Check Point Software Technologies: CheckPoint was founded by former members of the Israeli military intelligence unit (8200 Unit) and is a pioneer in firewall and VPN technologies.
  • CyberTech Conference: Hosted in Tel Aviv each year, it is the largest B2B cybersecurity networking event.


  • Elbit Systems: This company manufactures an advanced UAV – Hermes 450, which is used for reconnaissance and surveillance missions.
  • IAI Harop: Is a combat UAV that is developed by Israel Aerospace Industries and acts a loitering munition, aka a suicide or kamikaze drone.

Missile Defence

  • Iron Dome: This famous missile defence system can intercept short-range rockets and artillery shells.
  • David’s Sling and Arrow: Part of Israel’s multi-layered defence system, is designed to intercept missiles at different altitudes and ranges.


In exhibit 2 we highlight companies dual listed on the TASE and the Nasdaq, in the Aerospace and Defence sector. They include:

  • Elbit Systems (Nasdaq/TASE : ESLT) – One of Israel’s largest defence electronics manufacturers – products include UAVs, helmet-mounted systems, electronic warfare suites and avionics.
  • Tat Technologies (Nasdaq/TASE : TATT) – Manufacturers heat exchangers and cooling systems used in aerospace and defence, and provides maintenance and repair for overhaul (NRO) services.
  • Senstar Technologies – formerly Magal Security Systems which was dual listed – (Nasdaq : SNT) – Specialises in perimeter detection systems and management solutions designed to protect critical infrastructure, borders and high-value assets.
  • B.O.S. Better Online Solutions (Nasdaq/TASE : BOSC) – Provides components for aerospace applications, aviation parts and inventory management solutions.
  • ParaZero Technologies (Nasdaq/TASE : PRZO) – Designs and manufactures aerial safety systems, e.g. drone safety solutions (parachute systems) for commercial and recreational UAVs.

There are 2 state-owned Aerospace and Defence companies worth mentioning: Israel Aerospace Industries Ltd. (IAI) and Rafael Advanced Defence Systems Ltd.


Exhibit 2 – Peer group of companies on the TASE in Aerospace and Defence

Peer group of companies on the TASE in Aerospace and DefenceSources: ACF Equity Research Graphics; Refinitiv.


The aerospace and defence sector on the TASE represents more than just a commitment to national security; it is a beacon of innovation, cutting-edge technological advancements and investment opportunities. As global dynamics evolve, these companies are well-positioned to address emerging challenges and seize new opportunities.

This sector makes for a compelling consideration for investors with a keen eye on future-forward investments. However, they should also consider the inherent geopolitical risks and the cyclical nature of defence spending.



For investors and corporates interested in deeper insights to make considered investment and operational decisions in this dynamic sector, staying ahead with regular updates and expert analyses from a capital markets perspective is essential. Engage with the latest trends and strategic opportunities by subscribing to ACF Equity Research newsletter




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Christopher Nicholson, Managing Director, ACF Equity Research

Christopher Nicholson

Managing Director/Head of Research

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I founded ORACA Independent Equity Research a ground breaking highly independent thinking large-cap secondary comm business and ACF Equity Research, a very high-quality independent issuer-pays small and mid-cap research business. I opened our first corporate finance business (Destrier Partners) and am approaching the launch of our first non-financial services business. In my view, I am only able to do these things because of the quality of the team I work with at ACF. For 11 years I broadcasted as an expert guest and wrote regularly in the leading pan-European and international media including Bloomberg Television, BBC Radio 4 and the Financial Times.

I studied Biochemistry at Kings followed by Economics at LSE and can conduct business in English and French, I speak German and have basic knowledge of Spanish and Italian. My free time, which I make sure I carve out, is in part each day spent on my passion – riding, competing with and caring for my horse(s).

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Mike Wort

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I have managed over 20 IPOs in the US, UK and Europe from small to large cap, I am proud to be ACF Equity Research’s Non-Executive Chairman.

I am also Executive Chairman of Texadon Oil Plc focussed on oil & gas production in the Texas Gulf Basin and is a Non-Executive Director of UK AiM listed Diaceutics, a diagnostics commercialisation business. I am a life sciences communications expert and have a background in large and mega cap pharmaceuticals.

During my more  thann  20 IPOs and secondary raisings I have brought in well in excess of £600m.

In addition, I have co-founded a number of life science start-up companies in Europe and the USA.

I am a life science communications expert and former life sciences CEO (large to start-up). He graduated in microbiology and lectured to science undergraduates in both the UK and Nigeria. He joined the pharmaceutical industry, working in a number of senior sales, marketing and clinical roles for Glaxo, SmithKline and Wellcome in the UK and overseas.

Appointed IR Manager for Wellcome, I helped organise its global roadshow for a £2.4bn secondary offering.

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I worked with Deutsche Bank to privatise the Bulgarian pharmaceutical industry. As the CEO of Balkanpharma, I led the consolidation of the three key assets into one cohesive unit. Balkanpharma has, through a series of M&A activities, become a significant part of NYSE listed Allergan.

Formerly MD at De Facto Communications, Bell Pottinger’s healthcare offering, I recently retired from Walbrook, the UK’s most successful SME PR/IR agency.


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Amalia Barnoschi

Head of Operations

Joining ACF at its founding I started in financial services in 2007 on the sell-side with ORACA, a large-cap independent equity research business that changed the industry. Before financial services I was a highly successful and rapidly promoted young manager in manufacturing and have worked closely at board level for over 15 years with SMEs in the City and in other financial markets.

I co-run ACF with our MD, as Head of Operations, responsible for driving profitability and developing and designing processes and managing projects for ACF and for client partners to allow our portfolio of businesses to grow. I am bilingual English/Romanian, read Italian and am working towards my accountancy ACCA qualification with AAT.

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Renas Sidahmed

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I also wrote award winning research notes and met with senior politicians with varied global and local interests in both wealthy and less developed economies. My sector expertise includes natural resources (particularly oil & gas) healthcare, manufacturing, infrastructure and investment portfolio management.

At ACF, as part of my staff analyst role, I am also Head of ESG / Sustainability and its products and services.

Before joining ACF Equity Research, I worked with Japan’s second largest brokerage, Mitsubishi Bank, in the London office. I speak six languages including English (native), Italian, French and Arabic and obtained an MBA in Rome and a Mathematics degree from a sister Ivy League – Smith College. I joined ACF because of its entrepreneurial, female friendly City culture, overarching global values and excellent growth prospects.

Anthony Kimber

Anthony Kimber

Senior Analyst ESG / Sustainability

I have considerable experience in the wealth management and private banking industries. I am co-author of the Platforum UK Wealth Management Market Overview report, and previously was Research Director at PAM Insight, a specialist publisher for the wealth management industry. I engage in research and analysis both qualitative and quantitative and am an experienced project and business development manager. I have been commissioned by UHNWI's, companies and organisations for various bespoke projects.

I also contribute to major news and media organisations, compiling and analysing data and research for the Daily Telegraph and Evening Standard on national government and environmental issues. Prior, I contributed to the Guardian, the Spectator, BBC news and investigative programming, the Sunday Times, and the Sunday Times Rich List.

My interest in ESG and sustainability is focused on raising awareness and achieving practical and workable solutions to the climate crisis we are facing. I enjoy spending my free time with family and friends, watching cricket, theatre and film.

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Anda Maria Onu

Sales & Strategy

I have strong analytical, planning and execution skills, I love working as part of a team both inside ACF and externally with our clients and prospective clients.

I am used to working with and within senior leadership teams and understand the needs of small and medium sized companies through my current and previous professional experience, I graduated in life sciences with a specialisation in Ecology and Environmental Protection in Romania in 2007 and for my first job I worked in a laboratory carrying out chemical analysis of industrial waste-water.

I am passionate about the environment and work as a volunteer for the Sussex Wildlife Trust doing conservation work at the Old Lodge nature reserve. In my spare time I am a school governor and have been a juror at the Royal Court of Justice. My hobbies are dance, horses, swimming, opera and theatre.

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Zak Mir

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I am part of ACF’s advisory and execution team helping growth companies (nano, micro, small and mid-cap) maximise their profiles to achieve the optimal investment message.

Amongst others I have worked for Man Group companies, Berkeley Futures and Sucden. I have been a technical analyst, derivatives broker and Chief Market Strategist for a number of brokers in the retail space developing and optimising client trading strategies. I ran the well-attended annual Master Investor conferences and am a keynote speaker at the UK investor show. I also host the CityAM Podcast.

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Away from the markets, I am a song writer and musician and have a long and patient interest in politics – areas that continue to be potential additional professional careers.
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I work with Global clients as easily as entrepreneurial start-ups across a broad range of categories from Automotive to FMCG, Financial Services and Technology. My recent focus has been on Digital integration; Relationship Marketing; Content Planning and Brand evolution.

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Vicky Ryce

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Adrian Chiappe


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He has a deep understanding of his subject. Adrian has executed editing and supervisory analysis for investment banks, brokerages and fund managers. He has up-to-date knowledge of the operational and regulatory framework for international institutional equities markets. Adrian is a materials scientist and has languages