Potential further increases predicted for Rheinmetall Shares' value

Potential further increases predicted for Rheinmetall Shares' value

Riding High on Defense Boom: Rheinmetall Stock Lords over DAX in 2025

The Rheinmetall stock has been unstoppable in the DAX this year, with a whopping 20% surge in January, making it the undisputed frontrunner of the German benchmark index. Hot on its heels, Rheinmetall had a gain of over 100% last year, second only to Siemens Energy.

The re-election of Donald Trump and the ensuing demand for increased defense spending from NATO members, coupled with a global rearmament trend, are propelling Rheinmetall's stock to unprecedented highs. But the current price of around 730 euros may not be the peak just yet.

Soaring Heights Await: Rheinmetall (WKN: 703000)

While Swiss bank UBS is maintaining a neutral stance on Rheinmetall, their analysts have boosted their target price by a cool 28%, from 630 to 805 euros. This sizable increase suggests a potential 10% medium-term upside, but the gap to 805 euros might shrink swiftly due to the flood of positive news surrounding the company.

Grab the Opportunity While it Lasts

Investors eager to capitalize on potential new record highs would be wise to act swiftly. Many may prefer to wait for pullbacks, which have previously offered advantageous entry points as investors cashed out at all-time highs. However, those looking to fortify their portfolio with resilient investments can also find Rheinmetall among the components of the Stable Values Index by BÖRSE ONLINE.

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Enrichment Insight:- Strategic Developments: Rheinmetall's joint venture with Lockheed Martin for precision-guided missile production could yield substantial revenue by 2029.- Steady Growth: Rheinmetall's substantial order backlog of EUR 17 billion, up 196% from the previous year, indicates sustained growth potential.- Ambitious Goals: Rheinmetall aims for a revenue increase of 35% to 40% in 2025, accompanied by an operating margin of about 15.5%. These targets suggest continued growth, given the rise in defense budgets across Europe.

Investors aiming for potential new record highs might want to look into Rheinmetall (WKN: 703000), as its strong performance in the stock-market and the defense sector could lead to further finance growth. With positive news surrounding the company and a boosted target price by 28% from Swiss bank UBS, investing in Rheinmetall could offer a medium-term upside of 10%. However, investors should be cautious of potential conflicts of interest and consider the timing of their investments wisely.

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