German Steelmaker Salzgitter Thrust Into Defense-Stock Spotlight

A German steelmaker became the latest stock to benefit from a surge in European defense spending this week after getting the go-ahead for one of its products to be used for military purposes.

Salzgitter AG shares are up 30% since last Friday’s close, with a large part of the gains coming after Germany approved the company’s Secure 500 product, which has a level of steel hardness that can withstand ballistic attacks. Cautious comments from analysts failed to quell investor enthusiasm as the stock traded 14% above its average price target and headed for its best weekly gain this year.

Salzgitter’s ...