Jefferies Picks Tanks and Ammo Over Air Defense After War Slump

Shares in European armored vehicle and ammunition makers look attractive again after falling sharply since the start of the Iran war as investors prioritized air defense, according to analysts at Jefferies.

Europe’s defense sector was one of the surprise losers of the conflict. A Goldman Sachs Group Inc. basket of European names, which had doubled in value since the start of 2025, has dropped more than 5% since the US and Israel attacked Iran at the end of February.