YB new stock pitches (Thu, Jul 10)

Curtiss-Wright (CW), a defense industrial with aerospace, naval, and nuclear power expertise, trades at 23.6x EBIT with multiple tailwinds: NATO countries rearming (increasing defense budgets by 9.4% to $2.7 trillion), commercial aviation growth (global fleet doubling in 20 years), naval spending rising 46% under Trump to $40.1 billion, and a nuclear power renaissance. CW's nuclear business is positioned for substantial growth through plant life extensions (aftermarket revenue doubling to $600M in 5 years), Westinghouse AP1000 reactor content ($110M per reactor, $1.5B opportunity from 10-15 European reactors), and Small Modular Reactor (SMR) content ($20-120M per reactor). CW has strong competitive positions across all segments: sole-source supplier for many naval components, leading provider of defense electronics, and content on every nuclear plant in the US, Canada, and South Korea. Management projects earnings and free cash flow to double over 5 years, supporting a $800 price target (+112% upside) and 15% IRR. Key risks include DOGE cost-cutting efforts (limited impact expected), tariffs (20% exposure with planned mitigation), shifting defense priorities, and potential delays in nuclear growth.

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Amcor plc (AMCR), the largest global producer of plastic packaging, presents an investment opportunity following its merger with Berry Global, which will nearly double its revenues. Trading at 11.5x NTM EPS with 50% upside potential, the combined entity will generate 60% of revenues from flexible packaging and 40% from rigid packaging, maintaining mid-20% returns on invested capital with scale advantages (3-4x larger than competitors) and significant R&D capabilities ($200M annually). The business is economically resilient with stable, defensive consumer-oriented applications, having grown through COVID and the Global Financial Crisis. Environmental concerns about plastics are mitigated by Amcor's recyclable options for 100% of rigid and 90% of flexible products. The company expects low single-digit volume growth and mid-single-digit EBITDA growth, with EPS projected to grow at mid-teens through 2028, driven substantially by synergies from the merger. Both companies have successfully integrated large acquisitions historically, supporting confidence in achieving targeted synergies that will serve as a catalyst for the stock.

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Foster Electric (6794.T) is a compelling value investment trading below net cash with 47 billion yen in cash versus a 38.6 billion yen market cap, at attractive multiples of 8.61x PER, 0.57x PBR, and a 4.54% dividend yield with a 40% payout ratio. The company possesses world-class speaker and audio technology that benefits from two key catalysts: growing EV adoption (through proximity alert sound systems addressing safety issues in quiet electric vehicles) and potential AI device opportunities (having previously supplied Amazon Echo and Meta). Foster has consistently grown both revenue and profits since COVID recovery, and management is increasingly focused on shareholder returns. The investment thesis combines compelling valuation with strong thematic tailwinds from both EV and AI trends, while the stock's resilience during tariff war headlines suggests value investors are quietly accumulating positions.

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