0946 GMT - The market is pricing in a decade of extraordinary growth among European defense companies, Citi analyst Charles Armitage says. Whether that growth becomes a reality will likely depend on the new level of defense spending agreed by NATO at its next annual summit in June, he adds. One of the stocks that stand out is U.K. defense company Babcock International, which could see a 9% compound annual growth rate until 2028, he says. Meanwhile, shares in aerospace and defense manufacture BAE Systems look slightly cheap, while Renk Group's shares recently closed the gap with its key customer Rheinmetall, he adds. Babcock's shares are up 2.9%, BAE Systems' shares are down 0.2% while Renk's are up 1.9%. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

March 24, 2025 05:46 ET (09:46 GMT)

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