Rheinmetall Stock: Historic Climb Past €1,000 Milestone

German defense giant Rheinmetall achieved a significant milestone on Thursday as its stock price surpassed the psychologically important €1,000 mark for the first time, reaching an all-time high of €1,002.00. Despite a weak market environment with the DAX falling 1.1% to 22,551 points, Rheinmetall shares gained 2.6% to close at €995.40, demonstrating remarkable resilience. A key driver behind this surge was Morgan Stanley's bullish analysis, which raised the price target to an impressive €1,300, signaling substantial additional upside potential. This performance highlights Rheinmetall's extraordinary momentum since its 52-week low of €402.00 in March 2024, representing approximately 60% growth. The company continues to benefit from increased global defense spending amid persistent geopolitical uncertainties, with potential plans to convert civilian production facilities to defense manufacturing further enhancing growth prospects.

Defense Sector Shows Market Resilience

The positive trend wasn't limited to Rheinmetall, as other defense sector companies also gained ground. Sensor specialist Hensoldt rose 5% after reporting strong 2024 results, with order intake exceeding expectations and improved book-to-bill ratio of 1.3 compared to 1.1 in the previous year. Ongoing discussions about a new defense package appear to be bolstering defense stocks overall. Political developments following the German federal election are expected to maintain focus on the defense sector, providing additional tailwinds for companies like Rheinmetall. While other cyclical sectors face pressure from potential trade tensions, the defense industry proves crisis-resistant, attracting continued investor confidence.