In anticipation of further increasing armaments spending of the European countries, the shares of Rheinmetall and Hensoldt climbed to new record heights on Monday.
The entire industry was driven by it.
In the late morning, Rheinmetall in the DAX at the top went up by a good 11 percent to 909 euros. In the Xetra trade, she currently still lists 10.80 percent higher at 905.20 euros. In the MDAX, the shares of the armor electronics specialist Hensoldt were one of the top values with plus 12 percent to EUR 45.70. Most recently, the papers still noted 12.31 percent of 45.80 euros via Xetra. In the SDAX, the papers from the armored gearbox manufacturer Renk even increased by 17.21 percent to 29.36 euros and reached the highest level since May.
In addition, almost 5 percent rose in Paris Thales and are just below her record high from the beginning of June 2024. Saffran won almost 2 percent to 250.20 euros – at 250.60 euros, she had reached a new record right after the start of trade. In Milan, Leonardo was 5.3 percent high. The record high from 2000 is no longer far away here.
On the one hand, reference was made to the Munich Security Conference (MSC) and the consultations on the Ukraine course of the European countries in Paris as a driver. The focus is on working on a new package to increase armor expenditure and to support Ukraine, according to the Bloomberg news agency. It quotes an official informed about these plans, which was not named, with the statement that the output plans would only be announced after the Bundestag election on February 23 in order to avoid controversy before the vote.
On the other hand, US President Donald Trump is pushing for a quick end to the war in Ukraine. He wants to meet the Russian President Vladimir Putin talk about a solution for an end to the Russian war against Ukraine.
In addition, Ukraine’s President Wolodymyr Selenskyj met with the Rheinmetall boss Papperger to talk about an expansion of the cooperation, says Bloomberg, referring to the president’s website.
According to analyst Mohit Kumar from US bank Jefferies, an end to the war of security guarantees in Europe will make it essential for Ukraine. “Europe would have no choice but to increase defense spending”. So far, the Europeans have only reacted to corresponding claims from Trump and not acted proactively. But that will have to change.
In view of the demand of the US government that Europe must take responsibility for its own security and for the security of Ukraine, it is not a surprise that several high-ranking European politicians now demanded higher defense spending, also argues JPMorgan analyst David Perry. According to him, defense spending will have to increase over the next four years – and will also. He gives several reasons for this: the geopolitical environment, “which is completely different from that of the past 30 years” as well as the need to rebuild military skills after around 30 years of under -investment. In addition, the current US government is not willing to subsidize Europe’s security. “In short, we are in a completely new era of European defense spending.”
Analyst Alexander Wahl from the investment bank Stifel has raised its price for Rheinmetall from 650 to 1,037 euros due to the latest events and is therefore the most optimistic analyst. At the security conference, the Americans would have kept pressure on Europe, he wrote. The EU and the German Chancellor Olaf Scholz (SPD) brought the activation of a special clause to the European debt rules for higher defense spending.
Stifel expert choice assumes that NATO will set a destination between 2.5 and 3 percent of the gross domestic product in June. This enables Europeans to spend $ 85 to $ 176 billion a year alone. Accordingly, it expects a wave of orders for Rheinmetall, which is not priced to this extent.
UBS increases the course target for Rheinmetall – classification remains ‘neutral’
The major Swiss bank UBS has increased the price target for Rheinmetall from 805 to 924 euros, but left the classification primarily due to political imponderables. In the best case, analyst Sven Weier now trusts the papers of the armaments group and car supplier, according to his re -evaluation on Monday, courses of 1,275 euros. He raised his long -term surgical estimates for the armaments division by up to 33 percent.
Zurich (dpa-Afx broker) /
Frankfurt (dpa-Afx)
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