0939 GMT - Germany's largest arms maker Rheinmetall is seen by investors as the bellwether of the European Union's defense industry, Morgan Stanley's Ross Law and Marie-Ange Riggio say after holding meetings with investors in the U.S. and EU. There was interest in British defense group BAE Systems due to the improving outlook for U.S. defense budgets, they say. Leonardo is perceived as being on a growth trajectory, the analysts note. Investors' interest in Hensoldt, Saab and Kongsberg has increased, they say. However, interest in Thales and Dassault Aviation was more limited, they add. Rheinmetall is up 2.7%, BAE Systems advances 2%, Leonardo gains 2.7%, Hensoldt grows 2.4%, Saab raises 2.2%, Kongsberg moves up 4.3%, Thales gains 3% and Dassault Aviation 3.2%. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

February 09, 2026 04:39 ET (09:39 GMT)

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