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BUZZ-BAE, Thales: JPM backs on political uncertainty, higher defence budgets

** European defence cos Thales (Paris: FR0000121329 - news) and BAE Systems (LSE: BA.L - news) up over 1.5 pct and 2nd and 3rd top gainers on Stoxx 600 industrial goods & services index after JP Morgan Cazenove backs cos

** Brokerage says rising U.S (Other OTC: UBGXF - news) . & European defence spending due to events in the Middle East and related refugee crisis in Europe & Russia's active foreign policy could help forward P/E multiple expansion

** JPM hikes Thales TP to 81 euros from 73 euros

** BAE top FTSE 100 gainer after being raised to "overweight" from "neutral", TP to 605p from 465p & added to JPM's "European Analyst Focus List"

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** Stock, backed by RBC (Other OTC: RBCI - news) and closely watched Telegraph column over past week, among most heavily traded UK blue-chip stocks

** Ultra Electronics (Other OTC: UEHPY - news) & Cobham up marginally on brokerage's comments (RM (LSE: RM.L - news) : esha.vaish.thomsonreuters.com@reuters.net)