CSG Responds to Short-Seller Claims with Tank Debut and 20% Production Boost as Shares Tumble

Czech defence group CSG unveils the CFL-120 Karpat tank with FNSS while battling a short-seller report that wiped 13% off its share price. Analysts remain bullish with €40 target.

The Czechoslovak Group (CSG) is fighting on two fronts this month. On one side, it unveiled a new medium tank at the IDEB arms fair in Bratislava this week—the CFL-120 Karpat, a 34-tonne vehicle developed with Turkish manufacturer FNSS that signals a strategic push into integrated land systems. On the other, it is still reeling from a short-seller attack that wiped out 13% of its share price in a single trading day earlier in May. The disconnect between the company’s operational ambitions and market sentiment has rarely been wider.

Management has not taken the allegations lying down. The Prague-based defence group categorically rejected a report from Hunterbrook Media, which claimed CSG merely refurbishes old ammunition stocks rather than producing new rounds. The company reaffirmed the accuracy of its IPO prospectus and all subsequent regulatory filings, and said it reserves the right to take legal action. To underline its manufacturing capabilities, CSG announced plans to expand production capacity by 20% by the end of 2026, including a new assembly line in Slovakia.

The stock has partially recovered from the initial shock. By Friday, shares had risen 2.75% on the week to close at €16.42. Yet the damage is still evident: on a 30-day view, they are down almost 23%, and they now trade roughly 51% below the 52-week high of €33.81 set in January 2026. The relative strength index sits at about 61, suggesting no overbought conditions, but the annualised 30-day volatility of nearly 73% reveals persistent investor nervousness.

Analysts, however, have not flinched. All nine covering the stock maintain a buy recommendation, with JPMorgan keeping a price target of €40—more than double the current level. They point to fundamentals that remain robust: revenue surged last year, the order book is stuffed with €42 billion in contracts, and management continues to forecast an operating margin of roughly 24% for 2026.

The immediate test for CSG’s credibility will come soon. The company is due to publish its first quarterly earnings report since the IPO, which will reveal the one-time costs of listing. A second deadline looms at the end of May, when Slovakia must find a partner state under the European Union’s SAFE programme for cheap financing. Failure to do so could push up funding costs and delay future CSG contracts.

For now, the company is betting that a combination of new products and expanded production capacity will restore confidence. The Karpat tank, built for mobility and firepower, is a visible symbol of that ambition. But the market will be watching the numbers—not the hardware—for proof that CSG can deliver on its promises.