Goldman Sachs endorses Rheinmetall's venture.
In the ever-evolving landscape of the European defense sector, Goldman Sachs analyst Sam Burgess has taken a bullish stance on Rheinmetall, a leading German defense company. Burgess has given a "Buy" rating for Rheinmetall (WKN: 703000) and set a price target of 2,200 euros, marking a 15% increase from the current price and an 11% rise above the record high.
Burgess's optimism stems from Rheinmetall's strong pipeline, which aligns well with existing defense deficits in Europe. He praises the company for its best-in-class product portfolio. This week, Rheinmetall reached a new record high of 1,983.00 euros.
The European Defence Index, a collection of 20 top performers in the defense sector, presents an attractive option for those seeking diversification. Developed by Börsenmedien AG, the index holder, it's worth noting that Börsenmedien AG has a cooperation agreement with the issuer of the financial instruments based on the index.
Burgess is not alone in his positive outlook on defense stocks. He warns, however, of high valuations, emphasizing the need for a selective approach. In fact, his favourite defense stock outside of Rheinmetall is BAE Systems from the UK.
It's important to note that the author holds direct positions in Rheinmetall, a financial instrument mentioned in this publication. Furthermore, Börsenmedien AG receives remuneration from the issuer in the context of the cooperation agreement.
The consolidation period for Rheinmetall appears to be over, given full order books and high growth rates in revenue and earnings. This, coupled with the current rearmament cycle in Europe since the start of the Cold War, as stated by Burgess, paints a promising long-term outlook for Rheinmetall. The company's shares are also included in a real-time portfolio of Börsenmedien AG.
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