CSG Coverage Initiated at Sector Perform as RBC Notes 'Strong' Munitions Backdrop

11:42 AM EDT, 08/12/2026 (MT Newswires) -- RBC Capital Markets began its coverage of industrial and technology group CSG (CSG.AS) with a sector perform rating amid a "strong" munitions backdrop as part of its wider European Defence Primes sector launch. "CSG's +19% 2025-30E EBITA CAGR (vs peer average +16% p.a.) reflects a portfolio positioned almost exclusively in European defence's fastest-growing segments. Steadier growth in the M/L munitions business (80% of group EBITA) is supplemented by ~46% p.a. EBITA growth in new businesses (land/air defence/missiles)," the research firm said Tuesday. "While at a ~33% sector discount, we see this as appropriate given execution risks. Beyond the 5x new business revenue ramp, M/L faces risk from a short firm order book (~9 months), energetics vertical integration and a fading refurb business post-2027 (36% of division EBITA)." Analysts added that they see "promising" earnings growth at the Czech Republic-based group's medium and large-caliber ammunition segment but flagged "significant" execution risk in CSG's capacity expansion plans. The price target was set at 18 euros.