The turn of US President Donald Trump once again steered the focus on arms on Wednesday.
The Rheinmetall shares attract 3.01 percent to EUR 1,969.50 in the Dax time and thus approached their record of 1,983 euros again, which was set up in mid-September. With Renk and Hensoldt, two other German armaments values increased even more clearly to EUR 77.63 and 6.39 percent to EUR 103.20.
According to the US government, President Trump also triggered a lack of negotiation of the Kremlin in the Ukraine War and injuries to the NATO air space by Russia. Among other things, he had spoken out for the shooting of Russian aircraft in NATO territory. He also expressed himself optimistic about the chances of victory in Ukraine in war with Russia.
The armaments industry focuses on the reaction of the NATO countries to the provocations of Russia. Commerzbank expert Hauke Siemßen mentioned in a comment that the Atlantic Alliance warned Russia of escalation, since NATO will “use all the necessary military and non-military means” to defend itself.
“The markets observe the increasing tensions between NATO and Russia with great concern,” commented analyst Frank Sohlleder from the Broker ActivTrades. Provocations are nothing new, but the current dynamics can quickly result in an open military conflict. The potential economic effects of such a scenario are devastating. “Experts warn of an inevitable crash of the stock markets if the situation should escalate,” added SohlLeder.
The armaments companies, on the other hand, should continue to benefit from the upgrading in Europe. Rheinmetall is one of the largest profiteers on the stock exchange. A few days before the start of the Russian invasion in February 2022, the shares were still under 100 euros. Since then they have been exposed to their value. Rheinmetall is now one of the most valuable companies in Germany.
The Russian provocations increased urgency during arms projects and thus concretely made the potential, wrote Jens-Peter Rieck from the analysis house MWB Research. In doing so, suppliers would be preferred who can cope with the narrow schedule. Rheinmetall is very good in this regard. Rieck held his purchase recommendation with a price target of 2,500 euros, until then the shares would have more than a quarter upwards potential.
Since the beginning of the year, the course plan for Rheinmetall adds up to 217 percent – by far the best performance in the DAX. Hensoldt has tripled his market value in the current year alone, Renk even more than quadrupled. So far, the two armaments companies in 2025 are the strongest titles in the MDAX of medium -sized companies.
In the middle of the week with Leonardo, Thales and Bae Systems, the papers also attracted other armaments. In this country, Airbus and Thyssenkrupp were also moderate. While Airbus is active in the military area, among other things, Thyssenkrupp is primarily the submarine division TKMS in the spotlight.
/tih/jha/
Frankfurt (dpa-Afx)
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