Rheinmetall shares fell slightly on Thursday. The shares of RENK and HENSOLDT are now stabilizing again.
• Rheinmetall shares are rising again after losses at the start of the month
• Insider purchases by the CEO bring new confidence in the stock
• UBS analysts continue to see massive upside potential
Rheinmetall shares: price jumps back – RENK and HENSOLDT shares also stabilized
After a phase of weakness at the turn of the month, which temporarily pushed the share price down to 1,410.00 euros via XETRA on Monday, the Rheinmetall share price went up on Thursday: Ultimately, its price increased by 1.38 percent to 1,540.00 euros in XETRA trading, after an increase of 1.95 percent was recorded in Wednesday trading.
The shares of RENK and HENSOLDT were friendly on Thursday: RENK shares ultimately gained 0.47 percent on XETRA to 49.46 euros, while HENSOLDT shares were 1.10 percent higher at 69.05 euros.
The question now arises for investors: will this recovery last?
Rheinmetall boss sets an example: Insider purchases strengthen trust
Few things in the stock market are as compelling as personal investments by top management. Rheinmetall CEO Armin Papperger took advantage of the price decline on December 1st to buy more shares in his company for almost 300,000 euros. Specifically, he brought another 210 Rheinmetall shares into his portfolio at a price of 1,421.00 euros – and thus accessed his group’s securities for the sixth time this year. Papperger has invested a total of around 1.9 million euros. Stock market observers see these purchases as a strong signal of management’s confidence in the company’s future.
Analysts remain bullish: price target well above current value
The experts are also convinced: In an analysis on December 3rd, the major Swiss bank UBS stuck to its Rheinmetall price target of 2,500 euros – that would be a jump of more than 60 percent compared to the current price.
Analyst Sven Weier based the assessment on the assumption that a defense budget of only two percent of German GDP is currently priced into the price. However, he expects 3.5 percent and expects earnings per share of 28.83 euros for the full year 2025. That speaks for further potential – at least on paper.
Political sentiment fluctuates – markets seek direction
However, the market environment for defense stocks currently remains volatile. On the one hand, news of peace talks between the US and Ukraine caused short-term weakness in defense stocks. On the other hand, Putin’s warning words towards Europe have recently supported the prices of companies like Rheinmetall.
The next few weeks will now show whether defense stocks can recover sustainably or whether geopolitical risks will cause further setbacks.
Editorial team finanzen.net
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