CSG to benefit from Europe's ammo restocking - Berenberg starts at 'buy'

Rheinmetall AG

27/02/2026 12:44

** Berenberg initiates coverage on Prague-based defence company CSG NV CSG.AS with a "buy" rating, viewing it as a key beneficiary of Europe's ammunition restocking

** The brokerage estimates a 13-year, 103 billion euros ($122 billion) restocking process for European countries to rebuild artillery supplies, underpinning a 15% revenue CAGR forecast for CSG over 2026-30

** The firm's sector-leading profitability is set to improve further, with Berenberg seeing margins expanding by 300 basis points by 2030, driven by insourcing key raw materials

** A strong FCF outlook will provide "ample firepower for M&A", with the broker forecasting a deleveraging to a net cash position by 2030 and a potential 10% EBIT uplift from deals

** The shares trade at an attractive price, offering superior growth at a 15% discount to its closest peer Rheinmetall  RHMG.DE on 2027 EV/EBIT multiples, Berenberg adds

($1 = 0.8472 euros)

(Reporting by Hugo Lhomedet)

((hugo.lhomedet@thomsonreuters.com))