Czechoslovak Group: ReArming Europe – from ammo to armour (BUY - initiation of coverage)

Following its FY25 earnings release, we initiate coverage of Amsterdam-listed defence contractor Czechoslovak Group (CSG N.V.) with a BUY and a 12M price target (PT) of EUR 31.47/share, offering 26% potential upside. Controlled by Mr. Michal Strnad, CSG is the second-largest supplier of medium/large (M/L) calibre munitions in Europe and a prominent player in land warfare platforms, such as tactical armoured vehicles, IFVs and SPHs. CSG also has a limited, but growing, presence in defence electronics; and, in late-2025, set up its new Advanced Systems segment, to penetrate higher growth areas, such as micro-jet engines (for UAV and missile applications). These operations expose CSG to the EU and NATO’s ReArm initiative, and Ukraine’s munitions needs, which generated 79% of the group’s revenues in FY25. CSG’s second-largest revenue contributor is its Ammo+ division (21% of the group’s revenues in FY25), which is the largest firearms ammunition supplier globally, focused on the civil markets.