European defence stocks have surged as the continent's top political leaders gather for an emergency summit - so which should you invest in?
European defense stocks have surged amid heightened political tensions and increased military spending. Companies like BAE Systems, Rolls-Royce, Chemring, and others are experiencing significant growth. BAE Systems, a major defense contractor, has seen its shares rise 9%, while Rolls-Royce, a jet engine manufacturer, has increased by 2%. Chemring, a defense tech group, has surged 10%. Analysts such as Richard Hunter and Michael Field recommend BAE Systems as a top investment due to its diverse product range and global reach. Rolls-Royce, with a 460% rise over two years, is also favored, with 12 out of 18 analysts rating it a 'strong buy'. The surge is driven by political pressures, including the U.S. urging higher defense spending and European leaders like Denmark's Prime Minister Mette Frederiksen advocating for increased military support for Ukraine. These factors underscore the potential for continued growth in the defense sector.
