Defense stocks are currently being closely monitored by analysts. Opinions about RENK are divided.
• Balance sheet figures received rather disappointingly on the stock exchange
• Some analysts see possible entry opportunities at RENK
• On the other hand, also a warning about risks
RENK is currently the focus of analysts. The high demand for armaments brought the gear manufacturer record sales and new business last year. The company, which produces drive systems especially for tanks and the navy, was also able to improve its results. Shareholders can therefore look forward to a significantly higher dividend. RENK announced further growth in the new financial year.
Analysts see price potential for RENK
Despite the good numbers, the initial reactions on the stock market last week were rather disappointing. The analysis firm Berenberg Bank sees this development as a possible entry opportunity. The analysts consider the stock to be valued too cheaply compared to competitors and recommend buying it. They see possible major orders for military vehicles from Germany and other countries in the current year as the main driver. Berenberg estimates the fair value of the share at 76 euros, which would mean significant price potential given the current level.
Caution advised
However, according to ESG stocks from mwb research, a much more cautious assessment comes. Although RENK has achieved its forecast for 2025 and increased order intake to a record level, the company is fundamentally on track towards its goals by 2030.
However, analysts see several possible risks. The order intake forecast for 2026 is slightly below market expectations. In addition, analysts believe that the consensus estimates for development up to 2030 are ambitious.
In addition, mwb research points to structural uncertainties according to ESG stocks. These include possible export restrictions, changes in the product mix and a greater shift in demand towards other defense platforms, such as drones. Against this background, analysts currently only see the share as being fairly valued.
Optimism about Rheinmetall
Analysts are largely positive about the German industry leader Rheinmetall, whose good business figures the stock markets recently reacted only cautiously to. Buy recommendations were recently made by Goldman Sachs, Jefferies, Barclays, Bernstein Research and DZ BANK.
On Friday, Berenberg also raised his thumb for Rheinmetall. The private bank has left its rating at “Buy” with a price target of 2,100 euros. The defense company’s growth drivers are intact, wrote George McWhirter in his review of the business figures. The order pipeline has continued to grow since the beginning of the year, and the margins in the ammunition business surprised positively in 2025. McWhiter raised its revenue forecasts for 2026 and 2027. He revised his estimate for this year’s free cash inflow downwards, but is more optimistic for the next two years.
This is how defense stocks react
According to ESG stocks, the current reactions show that investors and analysts are increasingly differentiating between defense stocks.
In XETRA trading, the shares of defense representatives performed inconsistently on Friday. After initial gains, RENK shares ultimately fell 0.57 percent to 54.31 euros. Rheinmetall was also quoted 2.71 percent higher at 1,592.50 euros, HENSOLDT, on the other hand, was 0.64 percent lower at 78.10 euros and shares from TKMS rose by 1.12 percent to 90.20 euros.
Editorial team finanzen.net
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