One of the biggest winners of the so-called turning point is the defense company Rheinmetall and thus also the Rheinmetall share. Now, interviews with Rheinmetall CEO Armin Pappberger in „Handelsblatt“ and „Tagesspiegel“ have pushed the stock again. The Rheinmetall share climbed to a new all-time high and is now trading at around 346 euros (as of February 12, 2024, around 11 a.m.).

Since the beginning of the year, the Rheinmetall share has already climbed around 20 percent – and that after a very successful stock market year 2023. Before Russia’s attack on Ukraine in spring 2022, the share was still below the 100 euro mark. The company remains very optimistic for the coming years.

Rheinmetall wants to double sales With the groundbreaking for a new ammunition factory in Lower Saxony, Rheinmetall is further increasing its capacities. CEO Pappenberger told „Handelsblatt“ that by 2025, they want to produce „up to 700,000 artillery shells per year“ to overcome shortages in Europe.

Overall, Rheinmetall expects business to continue to boom in the next few years. In the first place, the major orders from the German government are expected to drive growth. In the next 7 to 8 years, Rheinmetall plans to double its sales to around 20 billion euros per year.

Rheinmetall share with crazy rally Following the recent reports, the Rheinmetall share is once again climbing and reaching a new all-time high – for the DAX share, this has already become a habit. Investors will particularly like Pappenberger’s statement that they expect a significantly increased defense budget in Germany even after the special assets have been used up.

Defense stocks continue to be in demand and there is no end in sight. On the one hand, the war in Ukraine has raised many question marks about the defense capabilities of Europe. And on the other hand, the US as a security guarantor is increasingly falling away, further armament seems inevitable.

For the Rheinmetall share, things are looking good in the short and long term as well. However, investors should keep in mind that the stock has had a crazy rally in the past 2 years. Under certain circumstances, setbacks are therefore possible, as the Rheinmetall share is no longer particularly cheap. The quarterly figures for Q4 and the annual report for 2023 in March could provide new impulses.

Source: https://aktienscreener.com