April 10, 2024 (EIRNS)—In a report issued on April 10, Goldman Sachs warned that defense stocks are overrated. “While our Portfolio Strategy team are relatively constructive on the European Defense outlook, they are not recommending EU Defense given the challenging valuation premium and recent outperformance,” the note said.
As a result, all defense sector stocks plunged on international markets. A defense shares index compiled by Goldman, slid much as 7.5%, the most since November 2022. Germany’s Rheinmetall was down 6.6%, Italy’s Leonardo 8.9%. Sweden’s SAAB, France’s Thales, and BAE Systems in the U.K. were also among the biggest losers on the European STOXX 600 index.