Rheinmetall Stock: Rally Stalls as Goldman Increases Stake

Rheinmetall's historic stock rally has hit a roadblock despite recent German parliamentary approval of increased defense spending. After reaching record highs Tuesday and gaining nearly 190% last year, shares of the Düsseldorf-based defense contractor experienced noticeable losses Wednesday in what analysts describe as a classic "buy the rumor, sell the fact" scenario. The company's valuation appears stretched at 51 times expected 2025 earnings, with technical indicators showing warning signs. The Relative Strength Index has stagnated while prices continued climbing-a bearish divergence suggesting a potential trend reversal. Adding to concerns is the extreme expansion of Bollinger Bands, with the recent pullback potentially triggering movement toward the 800 euro level.

Goldman Sachs Boosts Investment Position

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Sollten Anleger sofort verkaufen? Oder lohnt sich doch der Einstieg bei Rheinmetall?

Meanwhile, Goldman Sachs has significantly increased its stake in Rheinmetall to 5.27%, crossing an important reporting threshold. The position consists of 0.31% direct voting rights plus 4.96% in financial instruments, representing a substantial increase from the previous 3.57% in financial instruments. Despite current stock stagnation around 1420 euros following its impressive rally, several analysis firms maintain optimistic outlooks. Morgan Stanley recently raised its price target, projecting substantial growth potential through 2030. The broader defense sector continues benefiting from increasing NATO defense budgets, positioning Rheinmetall and competitors favorably with robust order backlogs.