European Defense Stocks Sink After Goldman Warns on Valuations
- Goldman strategist warns of “peak multiples” on defense firms
- Rheinmetall, BAE slide as Gaza cease fire chances grow
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European defense stocks fell heavily on Tuesday for their worst day in almost 18 months after Goldman Sachs analysts cautioned that the sector’s recent scorching rally had left it trading at elevated price valuations.
Goldman analyst Victor Allard said shares in firms such as Rheinmetall AG, BAE Systems and Saab AB are now at “peak multiples” compared to history, raising the question of whether they have any further upside. On Tuesday, a defense shares index compiled by Goldman, slid much as 7.5%, the most since November 2022, impacted also by the possibility of a Gaza cease fire.