Rheinmetall- Record Growth and Surging Sales

KEY TAKEAWAYS

– Spring time prompted a larger Russian attack on Ukraine, that retook most of the Kursk region back, as well as more Ukrainian land

– With no more US help because of Trump, Europe is left to devise its own defense strategy

– Rheinmetall was chosen for the task and the stock surged 1000% already do to a large growth in sales

 

Photo Credit: Rheinmetall website

Ukraine has been left to struggle without much help from US. President Zelensky was forced out of the meeting in the White House, after humiliating talks with US President Trump and his team. Peace talks that are ongoing between US and Russia also exclude Ukraine completely. This shift in policy has opened a fresh window of opportunity to Russia.

 

Since spring time is finally arriving, Russia has enhanced its military activities, bringing in large troops. It almost retook entire Kursk region back from Ukraine, surrounding 10.000 of their troops. Russian military has also advanced in Ukrainian territories, taking more land, and striking ever more targets with rockets and drones.

 

Another issue that was created by Trump, is the lack of funding and involvement with NATO alliance. Europe is left to defend itself, and is now balancing between sending armaments to Ukraine, as well as building new weapons and vehicles for its own (potential) defense. This meant that the budget needs to be adjusted for more defense spending. From the current 2% of GDP expense, European military has to take 5% of its entire GDP. This major shift in policy is now evident, and private military firms will take the win.

 
Biggest winner of these events, has to be German defense contractor, Rheinmetall, with the stock doubling in the past three months, and surging over 1000% since the start of the conflict in Ukraine. Analysts predict that this will be only the beginning, as Europe still has to shift from 2% to 5% of GDP expense, directed towards military. Rheinmetall now has bigger market capitalization than Volkswagen, from which it might buy out their two German factories and remodel them for constructing tanks instead of cars. It’s gaining many contracts, and it is expected to have at least 25% sales growth before the end of 2025. Also, the stock itself is poised for another 100% rise, with Wall Street analysts predicting price over 2.000 EUR per standard share during this year.
 

Tags :

AcademicFX, European Defence, German Stocks, Rheinmetall, Russia-Ukraine

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