1149 GMT - All European defense groups should increase their guidance for sales and earnings in the coming years due to rising defense budgets, but it might not happen in 2025, J.P. Morgan analysts David Perry and Lucy Fitzgerald say. Each European country in the North Atlantic Treaty Organization will need to pass its own defense budgets, which often requires parliamentary approval, decide how to spend the extra cash and negotiate contracts with defense companies. "We believe that we will now enter a phase where valuation multiples increase, with earnings upgrades following in time," they say. J.P. Morgan lifted the share price target of the 10 European defense groups it covers, including Babcock International, BAE Systems, Rheinmetall, Thales and Leonardo. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
March 03, 2025 06:49 ET (11:49 GMT)
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