Rheinmetall Stock: Record Highs Amid German Funding Boost

Rheinmetall shares surged 6.3% to reach an all-time high following Germany's coalition agreement on new debt funding packages. The defense contractor stands to benefit significantly from the €500 billion infrastructure initiative, with substantial portions expected to flow into the defense sector. This development comes as analysts express increasingly bullish outlooks on the Düsseldorf-based company, with Hauck Aufhäuser's expert even projecting "explosive growth" and nearly doubling the price target to €1,800. The stock's performance outpaced the already optimistic Deutsche Bank Research target of €1,300 set just one day earlier, demonstrating robust investor confidence in Rheinmetall's market position and growth trajectory.

Defense Sector Rally Gains Momentum

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The positive sentiment extended beyond Rheinmetall to lift the entire defense industry. Fellow German defense companies also recorded impressive gains, with Hensoldt climbing 7.1% and Renk advancing 6.4%. International competitors similarly benefited from the sector-wide rally, as evidenced by Italy's Leonardo and France's Thales posting gains of 7.1% and 5.6% respectively. This upward trend reflects growing investor recognition of increased defense spending across Europe amid heightened geopolitical tensions. The broader German market also responded favorably to the budget agreement, with the DAX index closing up 1.9% at 22,987 points.