JPMorgan doubles price target for RENK: great growth opportunities!

JPMorgan doubles price target for RENK: great growth opportunities!

Analysts are optimistic about the future of RENK AG, a company that produces drive technologies for military and civilian markets. These assessments are primarily motivated by the latest analysis from JPMorgan, which doubled the price target for RENK shares from 35 euros to 70 euros. This rebalancing is also reflected in an upgrade of the recommendation from “Neutral” to “Overweight”, which sends a strong signal to investors.

JPMorgan analyst David Perry emphasizes that RENK's sales prospects are very strong. He forecasts average growth of an impressive 18 percent per year until 2030. The possible upward scope through acquisitions is also mentioned, which further brightens the company's future prospects. This positive development is based on the increased valuation of other German defense companies such as Rheinmetall and Hensoldt, which puts RENK shares in a broader context. The original study was published on May 15, 2025.

Current market developments and analyst opinions

At the current price of RENK shares, which is around 25.05 euros, analysts are optimistic about future developments. The forecast for 2025 envisages an achievable price target of up to 35 euros, with an average of 31.87 euros. This offers significant growth potential of up to 40 percent. In addition, a dividend of at least 0.30 euros per share is expected for 2025.

The majority of analysts recommend buying the stock, supported by the company's strong quarterly results in 2024. However, there are risks, particularly dependence on the defense sector and geopolitical developments, which could have a negative impact on the business. The price-to-earnings ratio (P/E) is 18, which is considered average to slightly above average compared to the industry.

Financial highlights and future outlook

RENK AG achieved sales of 850 million euros in 2022 and employs around 3,000 people. It is noteworthy that around 70 percent of sales are generated from tank and marine transmissions. The share has been listed again on the Frankfurt Stock Exchange since February 2024 and shows an impressive price development of 51.72 percent in the current year.

For 2024, RENK achieved sales of 1.061 billion euros, with adjusted EBIT at 175 million euros and adjusted net profit at 115 million euros. Analysts are forecasting an 85 percent increase in profits for 2025, which could further increase interest in the stock. The current order backlog amounts to 4.8 billion euros, which represents a solid foundation for the company.

While RENK shares offer potential for long-term investors, the risks in the defense sector should be closely monitored. However, the company is well positioned to benefit from current market conditions and could continue to grow in the coming years.