Shares of Rheinmetall attain unprecedented peaks in market history.
In a significant development for the German defence and mobility technology company, Rheinmetall AG's stock has broken the 600 euro mark, reaching an all-time high of over 600 euros on Tuesday, April 2024. This milestone has sparked optimistic forecasts from analysts, viewing the stock as a buy with substantial upside potential.
The average 12-month price target by analysts is around €1,958, with a high estimate of €2,300 and a low of €1,037, indicating a potential upside of about +5.90% from current levels near 600 euros or above. More recent price dynamics suggest a continued upward trend, with forecasts of about a 15.85% increase in the coming months, bringing the price target near the €2,033 range according to TipRanks.
Historically, Rheinmetall AG stock has risen on average by 53.2% over a 1-year horizon, with a strong buy consensus from analysts and a high historical accuracy of these gains (>80% over 12 years). In USD terms, recent trading has seen the stock rise by about 0.66% on the last session, with a short-term expected gain of approximately 30.87% over the next 3 months, potentially reaching between $2,598 and $3,184 (approximately €2,300 to €2,800 depending on exchange rates).
The surge in Rheinmetall's stock price can be attributed to several factors, with the election victory of US politician Donald Trump being one of them. The continued geopolitical risks and global rearmament efforts are expected to ensure good business for Rheinmetall, contributing to rising stock prices in the long term.
Rheinmetall had previously expected an operating margin of 15 percent by 2026. However, the company has revised its expectations, aiming for an operating margin of around 18 percent by 2027. This is a significant increase from the previously expected margin and reflects the company's strong performance and positive outlook.
The company's expectations to reach sales of around 20 billion euros by 2027 remain unchanged. By the end of 2024, Rheinmetall's order backlog is expected to exceed 60 billion euros. The company's capital market day presented ambitious targets that contributed to the stock's rally.
However, profit-taking could follow the sharp price increase in Rheinmetall stock, providing opportunities for entry. Those who are already invested in Rheinmetall stock can let their profits run. In the best-case scenario, Rheinmetall's sales could increase to 14 billion euros by 2027.
Morningstar has set a fair value for Rheinmetall stock at 730 euros. Investors should consider these bullish forecasts but also monitor volume and price fluctuations, as recent trends show some divergence that may signal upcoming changes. With the increased expectations for Rheinmetall's performance and the positive outlook for the global defence industry, the company's stock offers promising prospects for investors.
Engaging in further analysis of the stock market, this surge in Rheinmetall AG's stock price opens up opportunities for investing, as analysts forecast an average price target of €1,958 within the next 12 months, with a potential upside of +5.90% from current levels near 600 euros. Moreover, recent price dynamics suggest a continued upward trend, with forecasts predicting a 15.85% increase in the coming months, bringing the price target near the €2,033 range according to TipRanks.
