European Defense Stocks Near Valuation Peak, Deutsche Bank Says

European defense stocks might be approaching a peak in their valuations, warn Deustche Bank AG analysts, who are among the few contrarian voices on a sector that has already surged more than 20% this year.

While rising US threats toward Greenland and military spending plans are among factors that have helped propel a Goldman Sachs Group Inc. basket of Europe’s defense names up almost 23% so far in 2026, Deutsche Bank sees a potential Ukraine peace plan and regional budget differences curtailing the rally.