Top EU defense stocks to buy if you missed Rheinmetall

⚈Leonardo SpA rose 82.19% in 2025 with strong earnings and mixed analyst views ⚈ Both offer growth potential for investors priced out of Rheinmetall’s rally Rheinmetall AG (ETR: RHM) has been rapidly gaining in popularity thanks to its brand recognizability paired with the EU’s ambitious €800 billion rearmament plan, strong quarterly results, and network of partnerships with other defense giants, but it has also grown exceptionally expensive. RHM stock has surged 206.83% within the last 12 months from €528.80 to €1,622.50, making it a somewhat unattractive ‘buy’ despite analyst bullishness. Fortunately for investors seeking to take advantage of the European Union’s military plans, but unwilling to buy a very pricey stock, the bloc has other arms manufacturers that are well-positioned for growth. Two prime candidates are defense firms from some EU’s strongest economies: France and Italy. Dassault Aviation (EPA: AM) Dassault Aviation (EPA: AM), with a tradition nearly as long as Rheinmetall’s, has been performing well in the 2025 market, but its stock has yet to genuinely rally on the bloc’s vast defense spending plan. Unlike RHM, which soared 168.46% year-to-date (YTD), AM is 62.23% in the green in 2025 and is changing hands at €317.80. The company’s report for 2024 also demonstrated strong growth in the vast majority of metrics compared to 2023, similarly positioning Dassault Aviation on the uptrend. One point of concern for prospecting investors is that Jefferies revised its rating of AM to ‘take profit,’ signaling low confidence that strong performance will persist. Leonardo SpA (BIT: LDO) The situation is similar for Italy’s Leonardo SpA (BIT: LDO). The arms manufacturer has been performing well in 2025 but with an 82.19% rally to €47.48, is far from RHM’s success. The company’s most recent earnings reports likewise show strength, particularly in revenue and operating income, further bolstering the ‘buy’ case. Analysts have, however, not been universally impressed, leaving some room for caution. Baader Europe, for example, switched the LDO rating to ‘add’ – ‘buy’ on April 3, but Citi (NYSE: C) downgraded it to ‘neutral,’ despite raising the forecast from €28.4 to €48.4 on April 4. Featured image via Shutterstock Source: https://finbold.com/top-eu-defense-stocks-to-buy-if-you-missed-rheinmetall/