Background of the Increase
Jefferies has raised the target price for Renk stock on May 2, 2025, from 44 to 60 euros and confirmed the “Buy” recommendation. Analyst Chloe Lemarie justifies this with an adjustment of the valuation methodology for defense companies to reflect their attractiveness as “safe investments.” At the same time, she extended the valuation period to 2028, indicating long-term confidence in the business model.
- Industry Context: The upgrade occurred before the Q1 reporting season, with defense stocks currently regarded as a stable sector.
- Comparison with other Analysts: Deutsche Bank simultaneously raised its target to 55 euros (“Buy”), but primarily refers to the Vehicle Mobility Solutions (VMS) segment as a driver. Jefferies’ significantly higher target price underscores a more optimistic assessment of the overall portfolio.
Drivers for Renk’s Development
- Order Situation: Both firms expect strong order inflows, particularly in the VMS segment.
- Strategic Partnerships: The collaboration with Partzsch for the development of electric machines (up to 4 MW) for submarines is seen as a “game changer” – the first prototypes are expected to be tested in 2025.
Market Reaction and Outlook
At the time of publication, the stock was trading at around 54.94 euros (+4.46% daily increase), showing further potential towards the new Jefferies target. The focus is now on the quarterly report on May 14, which should provide insight into the implementation of strategic initiatives.
For investors, the combined analyst support signals a phase of accelerated growth, driven by military demand and technological innovations in the supply business.