The German defense stocks, particularly from companies like Hensoldt, Rheinmetall, and RENK, have exited their consolidation phase following an impressive rally since the start of 2025, showing positive market development again. These stocks previously recorded strong value increases: RENK rose by about 250%, Rheinmetall by 185%, and Hensoldt by around 170% since the beginning of the year.
Factors of Recovery
- Political Support: The EU plans defense spending of up to one trillion euros by 2030, ensuring a stable order situation. Additionally, NATO decisions are accelerating rearmament in Europe.
- Market Sentiment: After a technical correction in July due to general market uncertainties, prices are recovering again. Analysts remain optimistic despite short-term fluctuations, with positive price targets, especially for RENK.
- Fundamentals at Hensoldt: The company is a leader in sensor solutions for data management, robotics, and cyber security. It has a market capitalization of nearly 10 billion euros and benefits from the interest of large institutional investors as well as the Federal Republic of Germany as a shareholder.
Interesting Opportunities for Investors
For private investors, these developments are particularly interesting, as the stocks continue to offer potential despite strong price gains. Buy recommendations focus mainly on Hensoldt due to its technological leadership and solid growth prospects in the defense sector.
In summary, German defense stocks are back on the upward trend after a phase of consolidation, driven by political tailwinds and solid company data – an attractive scenario for investors interested in this sector.