After 60% Wipeout, CSG Bets on Ex-Northrop Manager and Michigan Howitzer to Regain Investor Trust
Published on 07/04/2026 at 20:13 | Redaktion boerse-global.de
The Czechoslovak Group’s stock has clawed back some of its bruising losses, rising 14.45% in a week as investors cheered the group’s latest push into the US defence market. The shares closed at €14.59 on Friday, little changed on the day, but the weekly rally pulled the stock off the record low of €12.20 hit on 26 June.
The bounce, however, barely scratches the surface of a deeper slump. From January’s all-time high of €36.05, the stock remains nearly 60% lower, and the 50-day moving average of €15.97 — soon to be tested again — still lies above the current price. The 100-day average at €21.45 underscores how far the shares have fallen since the start of the year. The 30-day annualised volatility of almost 56% reflects the jittery trading that has defined CSG’s brief life as a public company.
What sparked the turnaround? The creation of a new US subsidiary, CSG Land Systems North America, based in Michigan. The entity will represent three long-standing Nato suppliers — Excalibur Army, Tatra Defence and Tatra Trucks — and is specifically tasked with selling the Morana self-propelled howitzer on a Tatra chassis to the US Army. The groundwork was laid in March, when the group hosted the US Army Detroit Arsenal for a live demonstration of the system.
Should investors sell immediately? Or is it worth buying CSG?
To lead the charge, CSG has recruited experienced hands from the US defence establishment. Jason Alejandro Monahan will head the Michigan outpost, while David Jacobs, a former Northrop Grumman executive, takes the presidency of CSG Defense North America from a new Washington office. The hiring spree has also drawn in former leaders from Rheinmetall, BAE Systems and Raytheon — a clear signal that the company wants to be seen as a transatlantic player, not just a European supplier.
Yet the market is waiting for more than management hires. CSG already has a foothold in the US munitions market: its MSM Group North America subsidiary won a contract in 2025 to build a 155 mm artillery-shell plant at the Iowa Army Ammunition Plant, with a monthly capacity of 36,000 rounds. But concrete orders for the Morana have not been announced, and analysts caution that facility tours and presentations do not equal signed contracts.
The stock’s technical picture offers little relief. The relative strength index sits at 48.9, near neutral, while the failure to reclaim the 50-day average means the recovery remains tentative. Since its listing on Euronext Amsterdam in January at €25 per share — raising €3.8 billion in Europe’s largest defence IPO — the stock has been whipsawed by short-seller allegations, production bottlenecks at the Kinetic Group’s US munitions operations, and a broader sell-off in European defence names such as Rheinmetall, Renk and Hensoldt. Even an inclusion in the Euronext Mid-Cap AMX index in late June failed to stem the slide.
All eyes now turn to August, when CSG is due to publish its half-year results. That report will test whether the US strategy is translating into firm revenues and profits. Until then, the €16 level — the 50-day average — marks the next technical hurdle for any sustained recovery, with the recent all-time low of €12.20 serving as the floor investors hope will hold.
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