Citi Research expresses optimism about defense stocks, claiming they are undervalued despite recent market downturns linked to uncertainty over defense spending and politics. Analyst Jason Gursky emphasizes the potential growth in the sector amid rising international military budgets and specific U.S. defense plans.

Rolls-Royce reported better-than-expected full-year earnings, upgraded their mid-term guidance, and announced a share buyback, resulting in a surge of their shares to an all-time high.