The Rheinmetall stock continues to be on an impressive success course. On May 28, 2025, Swiss bank UBS significantly raised its price target for the stock: from previously €1,840 to now €2,200, while maintaining the buy recommendation.
Current Development and Performance
- Price Increase: In 2025, the Rheinmetall stock has already risen by about 216 percent, even surpassing the strong previous year.
- Record Hunt: The stock continues its record hunt and benefits from a consistently positive market sentiment, which is further supported by analyst voices such as those from UBS.
Analyst Evaluation from UBS
- Price Target Increase: The new price target of €2,200 reflects the strong confidence in the company’s further development.
- Justification: Sven Weier, an analyst at UBS, emphasizes the financial stability of Rheinmetall as well as its ability to support suppliers – a crucial advantage in an industry with potential capacity bottlenecks.
- Industry Context: The defense industry faces challenges from geopolitical changes and increasing investments from NATO member states. According to Weier, these developments are already reflected in the current stock price.
Future Prospects
- Growth Potential: The optimized revenue forecasts underline expectations of continued strong growth.
- Strategic Positioning: Rheinmetall is well positioned to benefit from increasing defense spending.
- Investor Interest: The financial strength and strategic orientation may further stimulate investor interest.
Conclusion
The increase in the price target by UBS to over €2,000 underscores the high potential of the Rheinmetall stock in light of a robust business model and favorable industry trends. Analyst Sven Weier sees room for further growth despite already strong performance – especially in light of geopolitical uncertainties and increasing defense budgets worldwide.