Tank Builder’s Stock Hotter Than LVMH in New European Order

A Rheinmetall Panther main battle tank.Photographer: Kiran Ridley/Getty Images
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A rush by European governments to boost military spending has unleashed a rally in defense stocks so strong that they’re now as richly valued as the region’s high-flying luxury names.

Shares in German tanks and ammunition producer Rheinmetall AG have jumped more than 90% this year. That’s pushed its valuation multiple to a record, somewhere between Dior owner LVMH and Birkin bag maker Hermès International SCA.