Jefferies ups Hensoldt to 'buy', citing valuation and conservative outlook

Hensoldt AG

09/03/2026 07:25

** Jefferies upgrades German defence firm Hensoldt HAGG.DE  to "buy" from "hold", citing a more attractive valuation and a conservative cash flow outlook for 2026

** The broker notes the stock's valuation premium to European peers has shrunk, saying the recent derating "over-discounts execution risk"

** Jefferies says the 2026 FCF outlook seems conservative in view of strong German orders and advance payments

** The brokerage highlights continuing strong air defence demand and says operational challenges were left behind in 2025

** Uncertainty over the Future Combat Air System (FCAS) remains a risk but is partly mitigated by more stable progress in other programme elements and strong Eurofighter momentum

(Reporting by Bernadette Hogg)

((bernadette.hogg@thomsonreuters.com))