The Rheinmetall stock has shown impressive performance over the past week. But what is driving this price increase?
Price Development and Records
On Friday, May 2, 2025, the stock reached a new all-time high of €1,577.50 intraday and closed at €1,576.00, representing a daily gain of 5.1%.
This rise followed already strong trading days at the beginning of the week. On Tuesday, the price increased by 8.5% after the quarterly results were published, continuing its upward trend on Wednesday.
Drivers of the Rally
- Financial Results: In the first quarter of 2025, revenue increased by 46% to €2.305 billion, with profitability also significantly rising.
- Strategic Partnerships: A Memorandum of Understanding (MoU) with Lockheed Martin to deepen cooperation in the defense sector signals additional growth potential.
Analyst Opinions and Outlook
Jefferies analyst Chloe Lemarie raised the price target to €1,880 and emphasized the long-term potential until at least 2028. Reasons include:
- Geopolitical Situation: Global conflicts and European rearmament programs ensure full order books for the coming years.
- Technological Expertise: Rheinmetall’s positioning in areas such as electromobility and military systems strengthens its market position.
Comparison Quarterly Results vs. Market Expectations
| Key Figure | Performance Q1 2025 | Market Expectation |
|---|---|---|
| Revenue | +46% to €2.305 billion | Significantly exceeded |
| Operating Result | Not precisely quantified | Beaten |
For investors, it remains relevant that despite the rapid price increase, there is further upside potential due to structural trends like defense demand and energy transition technologies, although taking into account the risk of short-term corrections.