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Wells Fargo analyst Matthew Akers indicates that the U.S. government's fiscal 2026 budget request will exceed expectations for Department of Defense spending, with a proposed top line of $961 billion, reflecting a 13% year-over-year increase. This figure, which includes some reconciliation bill funds, suggests a 7% growth when adjusted, signaling a positive outlook for defense stocks. Key players in the defense sector include BAE Systems, Boeing, General Dynamics, HII, L3Harris Technologies, Lockheed Martin, Northrop Grumman, and RTX.
The DAX Index has rebounded 22% to €22,500, with key companies like Commerzbank, Rheinmetall, Zalando, and BMW in focus. Commerzbank's shares surged over 91% amid Unicredit's stake acquisition, while Rheinmetall's stock rose 242% due to increased defense spending. Zalando faces challenges with a 20% drop in stock, and BMW's upcoming results may reflect tariff impacts on its US operations. Other notable firms include Siemens Energy and Continental AG, which are also set to report earnings.
European banks, including UniCredit and Commerzbank, assert their readiness to finance the defence sector, countering claims of structural barriers. They emphasize the need for government clarity on defence spending to enhance access to finance for smaller companies, while acknowledging challenges posed by ESG concerns. As competition with US banks intensifies, European lenders aim to support local defence players and adapt to emerging technologies in the industry.
UBS has raised its price target for BAE from 1,600p to 2,450p, citing an anticipated increase in European defense spending, projected to reach 2.8% of GDP by 2030. The firm noted that BAE, despite underperforming compared to peers, remains a top-quality defense company with significant market potential. Analysts believe that changing investor perceptions and geopolitical factors will further boost defense budgets across Europe.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing strong positioning for the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings-per-share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights cautious expectations for European defense spending, predicting a shift in market share from US firms to European players.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing the company's strong position in the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings per share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights cautious expectations for European defense spending, projecting 2.5% of GDP by 2030, and has similarly upgraded Saab while downgrading Leonardo to Neutral.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing strong positioning for the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings-per-share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights a trend of European defense players gaining market share from US primes, maintaining Buy ratings for several defense stocks while downgrading Leonardo to Neutral.
UBS has upgraded Thales shares from Neutral to Buy, increasing the target price from €160 to €330, citing strong positioning for the defense supercycle due to its focus on electronic systems and integrated communications. The broker raised its 2029 earnings-per-share estimates by 12% following a 25% increase in EBIT estimates for the defense sector. UBS also highlights cautious expectations for European defense spending, predicting a shift in market share from US primes to European players.
Riversgold Ltd has secured an 80% interest in the Kalgoorlie Gold Project’s Northern Zone after exceeding the A$600,000 exploration expenditure requirement. The company plans to advance drilling and convert the tenement into a Mining Lease, with a drill rig mobilizing next month for the 2025 exploration program. Initial findings indicate a significant gold system, with metallurgical testing showing a recovery rate of 92.9%.
The week of February 17-21 will see significant earnings reports from major companies including BHP, InterContinental Hotels, BAE Systems, HSBC, and Rio Tinto. Key economic indicators such as the UK unemployment rate, wage growth, and various US metrics will also be released, influencing market sentiment. Notable shareholder meetings and trading updates are scheduled, alongside final results from firms like Centrica and Standard Chartered.
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
us defense budget proposal exceeds expectations boosting defense stocks
United States Dollar
RTX A/S
Lockheed Martin Corp
L3Harris Technologies, Inc.
Northrop Grumman Corp
Boeing Co
BAE Systems plc
General Dynamics Corp
USA
Donald Trump
Matthew Akers
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15:11 02.05.2025
top dax index shares to watch as earnings season approaches
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HENKEL AG&CO. KGAA
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MTU AERO ENGINES
SIEMENS ENERGY
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european banks aim to boost defence financing amid us competition
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ITA
POL
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12:34 01.04.2025
ubs raises baes price target amid expected surge in european defense spending
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Mbda
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Donald Trump
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16:20 24.03.2025
ubs upgrades thales to buy amid defense sector growth expectations
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ubs upgrades thales to buy amid defense sector growth prospects
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Leonardo S.p.a.
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Thales Hoss
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10:47 24.03.2025
ubs upgrades thales to buy amid defense sector growth expectations
10:47 24.03.2025
ubs upgrades thales to buy citing defense sector growth potential
10:47 24.03.2025
Riversgold secures 80 percent stake in Kalgoorlie Gold Project Northern Zone
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HSBC Holdings plc
Oracle Power plc
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Glencore plc
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David Lenigas
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06:00 19.02.2025
key earnings reports and economic indicators to watch this week
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BHP Group Ltd
Centrica plc
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Standard Chartered PLC
InterContinental Hotels Group PLC
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17:00 16.02.2025
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