Suche
Mein Konto
Rheinmetall shares on record: Trump and NATO cause a boom!
Rheinmetall shares reach record high after UBS price target increase. Analysts expect defense spending to rise.
Rheinmetall shares on record: Trump and NATO cause a boom!
The Rheinmetall share experienced a remarkable increase on Thursday and temporarily reached a new record high of 732.40 euros. This increase is supported by an extensive analysis by UBS and a resulting price target increase by analyst Sven Weier. UBS has raised the price target for Rheinmetall shares by 27.8% from 630 euros to 805 euros. Weier sees a particularly positive development in relation to the increase in defense spending by NATO countries called for by US President Donald Trump.
Trump is calling on NATO countries to spend 5% of their gross domestic product (GDP) on defense, with the market assuming a base case of 3%. The current ratio of defense spending to GDP is 2.1%. Weier expects an increase to 2.5 to 3.0% in the long term. The Rheinmetall share had already shown positive development in the previous days and exceeded the 700 euro mark for the first time on Monday and closed above this mark on Tuesday.
Analyzes and market development
In addition to the positive price target increase, UBS AG also published an analysis of Rheinmetall shares. This covered the defense spending of NATO members, which, according to statements from Trump and NATO Secretary General Mark Rutte, could more likely reach 3% of GDP. It could be beneficial for the company in the long term, as Rheinmetall receives about half of Germany's defense spending. If the German defense budget increases, there could also be corresponding price gains for Rheinmetall.
However, the analysis indicates that the half share of defense spending could decline in the future. The possibility of a peace deal in Ukraine must also be taken into account. In XETRA trading, Rheinmetall shares showed a loss of 0.8 percent at 12:42 p.m. and were trading at 643.80 euros. So far, 75,135 Rheinmetall shares have been traded during the day. The presentation of the fourth quarterly balance sheet for 2024 is scheduled for March 13, 2025.
For further details on the price target increase and market analysis, see the reports from finance.net and finanzen.ch.