0934 GMT - European defense groups Hensoldt, Renk and Saab are likely to face weaker investor sentiment after the annual summit of the North Atlantic Treaty Organization taking place in The Hague, Citi analyst Charles Armitage says. This is because the debate will move on to whether European countries will be able to achieve the new defense spending targets agreed on by NATO countries at the summit, he notes. NATO countries committed to spending 3.5% of their respective gross domestic products on defense, plus 1.5% of GDP on resilience and security-related matters such as border control. Armitage says Hensoldt, Renk and Saab are pricing in more growth than seems likely with 3.5% of GDP. Citi downgrades Hensoldt to a sell stock rating from neutral, Renk to sell from buy, and Saab to sell from buy. Hensoldt is down 1.2%, Renk is up 0.15% and Saab is up 1.2%. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

June 24, 2025 05:34 ET (09:34 GMT)

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