In this article, we discuss the 5 European defense stocks to buy now. If you want to read about some more European defense stocks, go directly to 10 European Defense Stocks to Buy Now.
5. HENSOLDT AG INH O.N. (XETRA:HAG.DE)
HENSOLDT AG INH O.N. (XETRA:HAG.DE) is a German firm that concentrates on the development and sale of sensor technologies for protection and surveillance missions. The demand for these technologies have increased in the wake of the Ukraine war. As the German government boosts defense spending to counter Russian aggression, HENSOLDT AG INH O.N. (XETRA:HAG.DE) could be one of the biggest beneficiaries. The firm has extensive expertise in the radar, optoelectronics and avionics sectors.
In addition to serving the defense sector, HENSOLDT AG INH O.N. (XETRA:HAG.DE) also has stakes in non-military businesses that include marketing of electrical engineering systems, optronic products and software solutions. This helps the firm with revenues during lean periods when defense spending does not amount to much. The firm was founded in 2017 and employs more than 5,000 people. In 2020, it posted a revenue in excess of EUR 1.2 billion. The CEO of the company is Thomas Muller.
4. QinetiQ Group plc (LSE:QQ.L)
QinetiQ Group plc (LSE:QQ.L) is a science and engineering firm with large stakes in the defense industry. The company employs artificial intelligence, analytics, and advanced computing technologies for manufacturing novel weapons and systems. It is based in the United Kingdom. In addition to defense, the firm also serves other industries like aviation and aerospace, energy and utility, financial services, government, law enforcement, marine, space, and other sectors.
On March 18, JPMorgan analyst David Perry upgraded QinetiQ Group plc (LSE:QQ.L) stock to Neutral from Underweight with a price target of GBP 320, up from GBP 260. In a bullish analysis, the analyst noted that the Russian invasion of Ukraine had “fundamentally changed the landscape for the European defense sector” and that the German announcements were indicative of a boost in military spending across the continent. Other investment advisors like Jefferies and Citi are also bullish on the stock.
3. Ultra Electronics Holdings plc (LSE:ULE.L)
Ultra Electronics Holdings plc (LSE:ULE.L) is a London-based firm that provides application-engineered bespoke solutions in the defense and security sector. Some of these include anti-submarine warfare systems, integrated hull and variable depth sonar systems for manned and unmanned platforms, torpedo defense systems, deployable underwater sensors, and electronic warfare systems, among others. The company was founded in 1993 and employs over 4,500 people.
On January 24, investment advisory Barclays maintained an Equal Weight rating on Ultra Electronics Holdings plc (LSE:ULE.L) stock and raised the price target to GBP 2,350 from GBP 2,200. The firm has business interests in the US in addition to Europe. Some other products that the company markets include manned and unmanned vehicle systems and equipment, ballistic identification, tool mark examination, optical imagery systems, safety sensors, and instrumentation and control systems.
2. Airbus SE (PAR:AIR.PA)
Airbus SE (PAR:AIR.PA) makes and sells aerospace products. It is one of the largest airplane manufacturers in the world. The company is based in the Netherlands. It has extensive interests in the defense sector. On March 31, news platform Bloomberg reported that the company was looking at alternatives to titanium as it sought to ensure a production ramp in airplane manufacturing. The titanium shortage has hit the firm since Western sanctions on Russia barred businesses from buying raw materials from Russia.
On March 18, investment advisory JPMorgan maintained an Overweight rating on Airbus SE (PAR:AIR.PA) stock and raised the price target to EUR 170 from EUR 165. Analyst David Perry issued the ratings update. In February, Morgan Stanley analyst Andrew Humphrey had also maintained an Overweight rating on Airbus SE (PAR:AIR.PA) shares and raised the price target to EUR 137 from EUR 135. The company recently partnered with Delta for the development of a hydrogen-powered plane.
1. Kongsberg Gruppen ASA (OSL:KOG.OL)
Kongsberg Gruppen ASA (OSL:KOG.OL) is a Norway-based firm that provides high-tech systems and solutions. It has interests in the maritime, defense, and digital sectors. Some of the solutions it offers to the defense sector include integrated command and control systems, remote control weapon stations, products for military tactical communication, naval strike and air-to-surface missiles, and components for F-35 combat aircraft. The firm was founded in 1814 and employs over 10,000 people.
Kongsberg Gruppen ASA (OSL:KOG.OL) is a government firm, with more than 50% of the ownership in the hands of Norwegian authorities. The company operates in North America, South America, Asia, Australia, and Africa in addition to Europe. Apart from the defense industry, the firm is also actively seeking to digitize the oil and gas, wind, and merchant marine markets. The stock has jumped nearly 56% in the past year. The Russian invasion of Ukraine has served as a major growth catalyst for the stock.
You can also take a peek at 10 Best EV Materials Stocks to Buy and 10 Best NFT Stocks to Buy Now.
