Jefferies Raises Price Target for Rheinmetall AG
Jefferies, a renowned research firm, has raised the price target for Rheinmetall AG ahead of the industry reporting season for the first quarter of 2025 from 1700 to 1880 euros and maintained the rating at “Buy.” This adjustment reflects a positive assessment of the future market development for the company and is of great significance to investors.
Background of the Adjustment
The increase in the price target by Jefferies is based on a reassessment of the defense industry, which is considered a safe investment option. Analyst Chloe Lemarie has adjusted her valuation multiples for defense stocks to account for this attractiveness. Moreover, the valuation period for these stocks has been extended until 2028.
Significance for Investors
The “Buy” rating and the increase in the price target signal that Jefferies is convinced of the continued positive development of the company. Rheinmetall remains the preferred company in the defense sector for Jefferies’ analysts. This assessment could encourage investors to invest in the stock as it indicates a potential appreciation in value.
Current Market Development
Rheinmetall has achieved impressive stock gains in recent weeks. At the end of the week prior to Jefferies’ announcement, the stock had a daily gain of 5.1% and reached a new record high. The current price of Rheinmetall shares is about 1,562 euros, reflecting a change of +4.76% compared to the previous day. The strong performance of the stock over the last 52 weeks, with a performance of over 200%, underscores the positive market development for the company.
Summary
The increase in the price target and the “Buy” rating by Jefferies are positive signals for Rheinmetall AG. They reflect the analysts’ confidence in the future development of the company and could prompt investors to invest in the stock. The strong market development and the reassessment of the defense industry also contribute to this positive evaluation.