Citi ups Hensoldt to 'buy' on longer ramp-up period, exposure to Germany defence

Hensoldt AG

14/11/2025 08:01

** Citi upgrades Hensoldt HAGG.DE to "buy" from "neutral", citing the German defence electronics group's longer-than-expected production scaling than forecast and the high exposure to Germany's defence spending

** "The new 2026 guidance shows that Hensoldt is longer

cycle than we'd forecast and hence it will take longer to ramp-up production than we'd previously forecast" - Citi

** The broker says only Germany and Sweden have sufficient fiscal headroom to materially increase defence spending through borrowing, and therefore less political challenges ahead

** The upgrade follows the company's Capital Markets Day, where it signalled a delay in achieving expected sales growth and margin improvement

** Shares rise 1.5%, up 143% YTD

 (Reporting by Paolo Laudani in Gdansk)

 ((Paolo.laudani@thomsonreuters.com))