02.06.2025

JPMorgan’s Optimism for German Defense Stocks: Growth Opportunities at Rheinmetall, RENK, and HENSOLDT

Growth Potential at HENSOLDT, RENK, and Rheinmetall

JPMorgan analysts highlight the impressive growth potential of German defense stocks Rheinmetall, RENK, and HENSOLDT. Despite already positive price developments, the rally is expected to continue.

Ratings and Price Targets

  • HENSOLDT AG
    • Rating: Upgraded from “Neutral” to “Buy” (“Overweight”)
    • Price Target: Increased from €50 to €110 – a potential of about 20%
    • Justification: Expected organic revenue growth of 15% annually until 2030, with an EBITA margin expansion of 200 basis points
  • RENK
    • Rating: Overweight
    • Price Target: Raised by 25% to €87.5
  • Rheinmetall AG
    • Rating: Overweight
    • Price Target: Unchanged at €2,100

Why is JPMorgan So Optimistic?

Analyst David Perry believes that the German rearmament cycle is only half completed by 2030, indicating a continuous high demand for military equipment. The growth factors include:

  • High demand due to geopolitical uncertainties
  • Increased military spending in Germany and Europe
  • Solid order backlog and improved margins

Summary

JPMorgan anticipates exceptionally positive prospects for Rheinmetall, RENK, and HENSOLDT. These securities offer investors attractive opportunities for capital gains.