** Shares in CSG CSG.AS recover all losses since short seller Hunterbrook's report this month, rising over 11% to the top of Europe's STOXX 600 .STOXX after the Prague-based defence company published solid quarterly results

** On May 4, Hunterbrook disclosed a short position and questioned CSG's production capacity and disclosures, sending the shares down as much as 26%; CSG rejected the claims

** Q1 revenue and adjusted EBIT came in at 1.54 billion euros ($1.79 billion) and 372 million respectively, "despite a tough Q1 comp base in Ammo+" division, Jefferies says

** The broker says the performance puts the group on track to meet its full-year guidance, which it reiterated, as well as its mid-term targets

** "We note helpful incremental disclosures on ammunition production growth, along with a solid improvement in FCF yoy," Jefferies adds

** The group expects large-calibre ammunition production rising to 850,000 rounds in 2026 from 550,000 in 2025

** Shares are on track for their best day since January IPO

($1 = 0.8626 euros)