0928 GMT - European defense stocks could see their valuations boosted by about 30% if the European members of NATO increase their defense spending to 3% of their gross domestic product, Citi's analyst Sam Burgess says. On Wednesday, U.S. Defense Secretary Pete Hegseth doubled down on President Trump's calls for European members of NATO to boost defense spending to 5% of their GDP. "If Russia emerges from a peace deal emboldened, we believe this is likely to make European nations--particularly those closer to Russia--feel less, rather than more, secure," Burgess writes in a research note. "In the end, the paradox of a peace may be that it catalyzes even higher European defense spending." (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
February 13, 2025 04:28 ET (09:28 GMT)
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