The Deutsche Bank recently reaffirmed its buy recommendation for the Hensoldt stock and impressively raised the price target from 71 to 111 euros. This positive assessment reflects the potential growth, particularly due to the increased federal investments in the defense sector. The sensor technology manufacturer is likely to benefit from this in the medium term.
Expected Growth Potential
By the year 2030, annual sales of over five billion euros are projected, which is already factored into the new price target. After a consolidation phase, German defense stocks, led by Hensoldt, are experiencing renewed interest from investors. The stock has quickly recovered and is currently trading near its all-time high of around 109 euros.
Critical Voices and Risks
Despite the optimistic forecast, there are also critical opinions. Jefferies, for example, warned of political risks associated with large European projects, such as the air combat system FCAS. These could result in France favoring its domestic industry. For this reason, Jefferies rates the Hensoldt stock as “Underperform” with a price target of 60 euros.
Conclusion for Investors
The buy recommendation from Deutsche Bank signals strong potential for investors, supported by solid growth expectations and government defense spending in Germany. However, investors should also consider possible political uncertainties in European defense projects.