Rheinmetall Shares Surge After Strong Q2, Profits More Than Double
Rheinmetall's shares have surged following a strong second quarter, with profits more than doubling. The company has maintained its annual targets despite the robust performance and analysts are divided on their recommendations for the stock market.
Rheinmetall's operating result soared to 271 million euros in the second quarter, a significant increase from the previous year. This positive business development was driven by advanced sales in the weapons and ammunition segment and a higher contribution from Rheinmetall Expal Munitions. The strong performance led to a three percent gain in the company's shares in early trading on Wednesday.
Analysts have differing views on the stock market's future. While UBS suggests waiting for a sustainable price increase, as defense spending in Europe is already priced into the stock and past performance has shown a tendency for sideways movement after a strong rally, DZ Bank has raised its fair value for Rheinmetall from 524 to 556 euros and recommended buying the stock. The next leg up in the share rally is technically expected once the stock breaks out above 1,982 EUR, which could confirm the uptrend and target a move toward 2,079 EUR. Currently, the share is consolidating between 1,884 and 1,982 EUR.
Rheinmetall will publish its full quarterly figures on August 8, following a strong second quarter. Despite the impressive performance, the company has confirmed its annual targets. Analysts' views on the stock market's future remain divided, with some suggesting a wait for a sustainable price increase and others recommending buying the stock.
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