** European defence cos Thales and BAE Systems up over 1.5 pct and 2nd and 3rd top gainers on Stoxx600 industrial goods & services index after JP MorganCazenove backs cos
** Brokerage says rising U.S. & European defence spendingdue to events in the Middle East and related refugee crisis inEurope & Russia's active foreign policy could help forward P/Emultiple 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 toJPM's "European Analyst Focus List"
** Stock, backed by RBC and closely watched Telegraph columnover past week, among most heavily traded UK blue-chip stocks
** Ultra Electronics & Cobham up marginallyon brokerage's comments (RM: esha.vaish.thomsonreuters.com@reuters.net)