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The Swedish Swedish Air Force Saab Jas 39 Gripen Jetfighter is involved in NATO exercise as part of the NATO health mission in the sovereign air space of the Alliance members on July 4, 2023.
John Tis | AFP | Gets the image
Shares of the Swedish defensive vogak Sab On Friday morning, he jumped up after the company reported a stronger increase in profits and sales in the second quarter.
Stocks last seen that traded 14.3% higher at 7:01
SAAB operating income for the second quarter amounted to 1.98 billion Swedish crane ($ 200 million), which noted the jump 49% compared to last year and included 1.71 billion kroons expected by analysts interviewed by LSEG.
Quarter sales increased by 30% than expected, 30% compared to last year.
On Friday, the company also went into the forecast of 2025, increasing the projection of organic sales per year to a range of 16% to 20%, which is from 12% to 16% compared to the previous forecast.
According to LSEG, SAAB shares have grown 131% since the beginning of the year.
Stock – one of many In a European defense space that has benefited from a wide regional jolt to increase security budgets.
On Wednesday the European Commission submitted the proposal For 2 trillion euro budget, which includes a significant blow to defense financing. This enters the frame mobilize as much as 800 billion euros ($ 928 billion) to help the nation -safety expenses.
Meanwhile members NATO’s military union Recently, they agreed to go for the expenses for defense up to 5% of the gross domestic product (GDP).
Speaking in front of “Squawk Box Europe” CNBC, CEO of Saab Micael Johansson said the activity on the European Defense market was “really high”, but Saab had “a great portfolio that supports market demand.”
“What you see in this quarter is what we are stepping up,” he said. “We now have a number of companies, recently there is a lot of interest, and it is a little deployed.”
When it comes to increasing regional defense costs – which was running after US President Donald Trump pushed In order for Europe to take great property for its own security – Johansson said that Europe needs to take advantage of the opportunity to strengthen its defensive sector.
“The US administration rightly says we have to step up in Europe and take great responsibility for our own security,” he said CNBC.
“Thus, many countries are now increasing their own defense.
In a note on Friday, Qi Analysts once again confirmed the “sell” rating for SAAB stocks, acknowledging that the company “had” a very strong quarter. “
However, they added that their assessment models are still indicating the target price of 374 Swedish crown. After the rally on Friday, this will reduce about 31% of current prices.
“Currently, European defense expenses have a strong impulse up,” they said. “We believe it will be a peak of 3.5% of GDP, and we are skeptical of further increasing because governments have other cash use.”
