0825 GMT - Europe's efforts to reduce its reliance on U.S. defense manufacturers will benefit continental European companies over the U.K.'s BAE Systems, Jefferies analysts say. This shift should boost Germany's Rheinmetall and Italy's Leonardo when it comes to land defense, and France's Dassault Aviation--the makers of Rafale fighter jefts--over BAE, the analysts say. Jefferies notes the increased pressure across the continent to spend more on defense. Rheinmetall, its top pick, Renk Group, Dassault Aviation and Leonardo are initiated at a buy rating, while Hensoldt is rated underperform. Rheinmetall and Renk don't appear fully valued, the analysts note. Shares in BAE Systems are up 0.8%, Renk is up 5%, Rheinmetall rises 4.4%, Leonardo is up 0.8%, Dassault Aviation climbs 0.8%, while Hensoldt falls 1.2%. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
March 13, 2025 04:26 ET (08:26 GMT)
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