Rheinmetall Stock: Analysts Raise Targets Amid Historic Rally

Rheinmetall continues its remarkable upward trajectory, with shares climbing to €1,319.50, representing an impressive 114 percent gain since the beginning of the year. Analysts are increasingly bullish on the Düsseldorf-based defense contractor, with Hauck Aufhäuser Investment Banking nearly doubling its previous target to €1,800. Jefferies analyst designates Rheinmetall as a sector favorite with a €1,540 target, while UBS raised its projection to €1,600, impressed by the company's strategy to capture 20-25 percent of European NATO defense spending over the next five years. JPMorgan similarly increased its target to €1,400 with an "Overweight" rating, suggesting the company will soon revise its 2025 targets upward. The geopolitical climate has positioned Rheinmetall as a central player in European defense, with analysts describing a "supercycle" in the industry and a "decades-long rearmament cycle" with annually increasing defense budgets through 2035.

Strategic Partnerships Bolster Market Position

Anzeige

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

Rheinmetall has further strengthened its European defense sector standing through a new strategic cooperation with Spanish technology group Indra. The companies signed a memorandum of understanding to comprehensively modernize Spain's Leopard 2 E Combat Systems, integrating cutting-edge technologies to enhance combat effectiveness and ensure compatibility with future combat vehicles. This forward-looking collaboration between Rheinmetall Electronics and Indra is viewed as pivotal for European combat platform modernization. Despite reporting strong quarterly results-with earnings per share rising to €10.87 from €7.44 year-over-year and revenue growing 36.16 percent to €3.48 billion-the stock recently experienced a slight 0.7 percent correction to €1,310.00 in XETRA trading.