FRANKFURT (dpa-AFX) - The record chase for Rheinmetall shares only entered the next round on Friday. After US bank JPMorgan raised its target price to 2,100 euros, the defense group's shares rose to a record high of 1,744 euros.
However, profit-taking then set in: after a daily gain of 2.5 percent, they were last down 0.3 percent. The other two relevant defense stocks fared similarly on the Frankfurt Stock Exchange: Renk lost 1.5 percent in value and Hensoldt 2.9 percent.
However, this should not detract from the good run of these three stocks in the medium term, as some analysts still see a lot of potential for Rheinmetall: Deutsche Bank raised its target on Friday to €1,800, and DZ Bank now sees the fair value close to the €2,000 mark.
David Perry of JPMorgan is particularly optimistic, however, as targets above €2,000 are still rare. He significantly changed his assessment due to the determination of new German Chancellor Friedrich Merz (CDU) to invest heavily in defense. He took into account important contracts awarded in the industry in recent years and emphasized the strength of Rheinmetall's balance sheet. He also mentioned the establishment of a joint venture for satellite production. /tih/niw/mis
