Rheinmetall, HENSOLDT and RENK: Losing streak continues

Rheinmetall, HENSOLDT and RENK: Losing streak continues

The shares of Rheinmetall, HENSOLDT and RENK continued their losing streak from the previous day. These three companies benefit significantly from current geopolitical conflicts that are ongoing worldwide. The escalation of Russia's war of aggression against Ukraine and the tense Middle East conflict are contributing to the rise in the share values ​​of these defense companies. Despite this initial positive development, share prices began to fall in the last few days, which is also continuing in current XETRA trading.

In Thursday trading, Rheinmetall shares fell 4.02 percent to 510.40 euros, while HENSOLDT shares fell 3.48 percent to 37.20 euros. The RENK share also suffered a loss of 3.24 percent to 28.23 euros. Although RENK has only been listed on the Frankfurt Stock Exchange since February 2024, the price is still above the initial price of 17.50 euros when it went public.

One possible reason for the current losses is investors taking profits as no new company news was released. Rheinmetall plans to build a new plant in Lithuania to produce artillery shells following the successful sale of its small piston production. Some analysts, such as JPMorgan's David Perry, advise taking advantage of Rheinmetall's setbacks as the long-term outlook is good despite a weak start to the year.

Despite the current correction mode, there are experts who point to the potential of other companies such as Leonardo from Italy and Babcock International from the UK. Both companies still have room for improvement as their share values ​​are well below their record highs of previous years. It remains to be seen how the shares of Rheinmetall, HENSOLDT and RENK will develop in the coming days.