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Investors expect European countries to ramp up spending on fighter jets, tanks, and other equipment, bolstering the shares of the companies that can build it.
Martijn Rozemuller, CEO of Europe at VanEck — which manages a defense-focused ETF — discusses investing in the sector after European defense stocks hit a record high.
“NATO is dead,” wrote Vertical Research Partners analyst in a Tuesday report summarizing recent news for his clients.
As officials meet with Russian counterparts in Saudi Arabia Tuesday to discuss ending the war in Ukraine, shares are climbing again.
European defense stocks hit record and government bond prices fall on bets of more military spending
Defense shares surge on expectations of higher NATO spending as Trump seeks deal with Putin
CNBC's Eamon Javers and TD Cowen's Roman Schweizer, join 'The Exchange' to discuss Trump's comments on halving defense spending and the impact it could have on defense stocks.
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General Dynamics posted strong growth in key metrics, but aerospace and submarine segments faced challenges, impacting overall performance and necessitating a price target trim to $307. Aerospace segment underperformed due to G700 certification delays and supply chain issues, but improvements are expected, potentially boosting future guidance. Combat Systems and Marine Systems showed solid growth, with demand for munitions and submarines driving revenue despite ongoing supply chain challenges.
President Trump issued an executive order for the United States to deploy an Iron Dome defense system similar to the one that Israel has successfully implemented and used to protect their homeland from rocket attacks from Hamas, Iran, and other hostile entities.
RBC Capital Markets analyst Ken Herbert cut the price forecast for General Dynamics Corporation GD to $280 from $290, while reiterating an Sector Perform rating.