1302 ET - Escalating tensions in the Middle East are whetting an appetite for more advanced defense offerings, Stifel analysts say in a note, pointing to the use of drones and electronic warfare in the first few days hostilities. "New defense tech verticals are front & center" in the conflict, the analysts say. They see the trend benefiting a number of drone stocks as well as Caci International, which has a growing electronic warfare business, they say. "We think the Iran conflict demonstrates the important role EW plays in the new fight," they say. CACI International is up 1.3%. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

March 02, 2026 13:02 ET (18:02 GMT)

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