Rising by 15% annually, is the value of this German arms company potentially higher than the price of Rhine deer?
In the dynamic world of defense industry stocks, two German companies, Renk and Rheinmetall, have been making waves. While Rheinmetall has established itself as a formidable player, with a market capitalization of approximately 87 billion EUR, Renk, a newer entrant, is considerably smaller.
Rheinmetall's success is evident in its year-to-date gain of around 80 percent, making it one of the most successful stocks in the DAX. This growth has been fueled by global rearmament plans, which have filled Rheinmetall's order books. In contrast, Renk aims to double its revenue to around two billion euros in the coming years, with an expected adjusted earnings before interest and taxes (adjusted EBIT) of around 300 million euros by 2027.
Renk's stock has reacted cautiously to recent news, with a slight loss of almost 4% and current trading at around 22 euros. This cautious reaction is likely due to the significant gap in size between the two companies, with Rheinmetall unlikely to face serious competition from Renk in the near future.
Despite this, Renk remains an interesting candidate whose development should be monitored further. Analysts such as Hauck Aufhäuser Investment Banking recommend buying Renk's stock, with a target price of 35.40 euros. This recommendation is based on the current favorable profit dynamics of Renk, as highlighted in a study published on Monday, and estimates raised.
Meanwhile, Rheinmetall has reached an all-time high of over 571 euros in April and recently approached this mark again. However, strong profit-taking has caused Rheinmetall's stock to drop to around 500 euros. Despite this dip, Rheinmetall remains in the Stable Values Index of BÖRSE ONLINE.
In the German benchmark index, Siemens Energy is currently doing slightly better than Rheinmetall. This competition is a testament to the strength of the German stock market and the potential for growth in various sectors.
In conclusion, while Rheinmetall continues its impressive growth, Renk, with its ambitious growth plans and potential, remains a stock to watch. As both companies navigate the defense industry landscape, their performance on the stock exchange will continue to be a point of interest for investors.
Renk's WKN is 703000, and Renk's WKN for stock trading is RENK73. For those interested in investing in Rheinmetall, the company's WKN is 710000. As always, it's essential to conduct thorough research and consider professional advice before making any investment decisions.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
