It was only on Tuesday that Rheinmetall shares reached a new all-time high and analysts were also confident. Then suddenly things went downhill. This is what investors should know now.
The shares of the defense company Rheinmetall hit one record after another until Tuesday. Last week the shares rose to a new all-time high, and on Monday and Tuesday the stock beat its newly set record again. Nevertheless, the stock suddenly fell sharply on Tuesday and profit-taking occurred. At its peak, the title temporarily fell by twelve percent, but the price has now recovered somewhat.
The prospects for Rheinmetall remain good in a favorable market environment. The newspaper “Die Welt” recently reported that Rheinmetall would like to equip the cannon of the Leopard 3 main battle tank with a larger cannon. The news is of course in the larger context of NATO’s rearmament efforts, including in the wake of the war in Ukraine.
According to Secretary General Jens Stoltenberg, the international alliance should have a significantly larger role in supporting Ukraine. According to his idea, alliance partners should promise the country military support worth 100 billion euros over the next five years.
The new price targets for the share also promise a positive outlook.
Double-digit potential for Rheinmetall shares
The investment bank Goldman Sachs has now raised its price target for Rheinmetall shares from 381 to 606 euros, which corresponds to a difference of almost 60 percent.
Bankhaus Metzler is even more optimistic, raising its price target from 550 to 705 euros. The morning before the price crash, at a value of around 560 euros, that already corresponded to a potential upside of around 25 percent. Analyst Alexander Neuberger wrote in a study last week that the defense company’s expansion is continuing to gain momentum compared to its competitors. Due to an expected acceleration in growth in the ammunition business, the Group’s earnings and operating margin are likely to increase significantly.
Rheinmetall
(WKN: 703000)
Rheinmetall remains stable at the top
Despite the current profit-taking, Rheinmetall remains a solid investment with its business model. But if you don’t just want to rely on individual stocks, where, as can currently be seen, there are sometimes strong price fluctuations, you can take a look at the Stable Values Index from BÖRSE ONLINE. In addition to Rheinmetall, the index also includes 17 other stocks that can survive in a risky market environment or even benefit from it.
Transparency note: The slide in Rheinmetall’s share price was not mentioned in an initial version of the article. We have updated the article after the strong sell-off on Tuesday morning, adding information to the relevant sections and adjusting the headline and teaser.
Stock Exchange Online Stable Values Index open end (SON) (WKN: DA0ABL)
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