0905 GMT - European defense stocks face a volatile first half of 2025, Jefferies analysts say. This is due to a potential ceasefire in Ukraine, which may weigh on the shares of companies supplying weapons and ammunitions to the war-torn country, they note. In the case of European defense manufacturers highly exposed to the U.S., volatility may come from the budget efficiency push by President Trump, the analysts say. Jefferies lowered its valuation multiples across several defense companies, but maintains a hold rating on BAE Systems stock despite its U.S. exposure. Thales and Babcock International still look "attractively cheap," the analysts say. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

January 22, 2025 04:05 ET (09:05 GMT)

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