0840 GMT - Europe's defense companies face the risk of profit taking in the near-term if Ukraine and Russia reach a cease-fire agreement, after years of consistent share-price increases, Barclays analysts say. Defense has outperformed MSCI Europe by about 60% year-to-date, and investors are now questioning whether multiples have reached bubble territory, the analysts write. Expected good news on rising defense spending is likely priced in now, they say. However, they recommend using potential dips as buying opportunities, given the strong structural growth prospects of European defense companies. Shares in Leonardo are down 3.4%, while Thales falls 6.5% at 228 euros, and BAE Systems loses 2% at 15.44 pounds. Indra Sistemas, QinetiQ, Saab, Dassault Aviation, Fincantieri, Chemring, Babcock International and Hensoldt are also down in morning trade. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
March 12, 2025 04:41 ET (08:41 GMT)
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