Rheinmetall Stock: Record High on Ambitious Growth Plans

Rheinmetall's stock soared to an all-time high of 610 euros on Tuesday, driven by the company's announcement of ambitious mid-term goals. The German defense giant aims to double its revenue to 20 billion euros by 2027 while achieving an operating margin of 18 percent. This optimistic forecast sparked investor enthusiasm, propelling the stock price up by 4.1 percent. The company's growth strategy is underpinned by its entry into the US market and a joint venture with an Italian defense firm, positioning Rheinmetall to capitalize on increasing global defense spending. With an expected order backlog exceeding 60 billion euros by year-end, the company is solidifying its role as a key player in the defense sector.

Expansion and Geopolitical Tailwinds

Rheinmetall's positive trajectory is further supported by strong quarterly results, with earnings per share reaching 3.11 euros in the third quarter of 2024. The company's growth is bolstered by the current geopolitical climate, which has intensified demand for defense technology. Modernization efforts of the German armed forces and support for Ukraine contribute to Rheinmetall's favorable outlook. Analysts express confidence in the company's targets, reflected in an average price target of 623.88 euros.