Defense Race Sends Europe’s Arms Makers to Best Run in 16 Months
- ‘Rheinmetall will be the clear winner,’ says Mwb analyst Rieck
- Goldman basket of defense stocks has surged 11% this week
There’s also some concern that the rally may slow as valuations for some defense stocks have hit premium levels.
Photographer: Axel Heimken/AFP/Getty ImagesThis article is for subscribers only.
European defense stocks are on the cusp of closing out their best week in 16 months on a bet that the region is about to massively ramp up spending in support of Ukraine.
A Goldman Sachs Group Inc. basket that includes Rheinmetall AG and Leonardo SpA has surged 11% this week. The moves extend what’s already been a dramatic rally, with Rheinmetall, a German maker of combat tanks and air defense systems, as the big standout with a 45% surge so far in 2025.