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Rally in defense stocks continues - analyst opinions on Rheinmetall & Co.
The German defense stocks from Rheinmetall, HENSOLDT and RENK continue to rise. Find out more about the latest developments and analyst ratings. Military spending reaches peak.
Rally in defense stocks continues - analyst opinions on Rheinmetall & Co.
The positive development of the German defense stocks Rheinmetall, HENSOLDT and RENK continued, also on Tuesday. The Rheinmetall share rose by 0.94 percent to 514.60 euros, the HENSOLDT share by 1.21 percent to 38.34 euros and the RENK share even by 2.80 percent to 29.88 euros. Since the beginning of the year, Rheinmetall has recorded growth of around 78 percent, HENSOLDT of around 55 percent and RENK of almost 48 percent since its IPO in February.
Military spending peaked at $2,443 billion in 2023, up 6.8 percent year-on-year. This increase is attributed, among other things, to the conflict between Russia and Ukraine and tensions in the Middle East. Experts like Lorenzo Scarazzato from the Stockholm peace research institute Sipri see this as increasing uncertainty and an increased focus on military measures.
Analysts have differentiated views regarding Rheinmetall, RENK and HENSOLDT. The US bank JPMorgan gave Rheinmetall a positive rating with a price target of 600 euros, while Deutsche Bank Research lowered its rating from “Buy” to “Hold”. Similar valuations were made for RENK and HENSOLDT, although the analysts assessed the price potential differently.
Rising military spending and changing geopolitical conflicts influence the development of defense stocks. Rheinmetall, RENK and HENSOLDT benefit from this environment, which is also reflected in the positive price developments. Analysts' opinions are divided, and investors must consider the various assessments to make informed investment decisions.