Rheinmetall

If European NATO members would raise their military spending to ~3% of their GDP, this would mean a combined yearly spending of over 500b€. Rheinmetall management assumed on 12th March 2025 that 20% to 25% of the entire military spending could be spent with Rheinmetall.

Key Takeaways Strategic alliances and joint ventures are set to amplify technological advancements, revenue, and profitability. Robust backlog and defense focus are likely to sustain profitability and enhance future revenue streams.

WHY? Rheinmetall’s stock could justify a valuation of $430 due to its strategic positioning in the defense and automotive industries, particularly as global defense spending rises amidst growing geopolitical tensions.

Key Takeaways Rheinmetall stands to gain from increased European defense budgets, with strategic expansions in production likely boosting revenue and improving margins. Strong joint ventures and digitization efforts are set to enhance future earnings and profit margins, supported by aggressive growth strategies in ammunition and electronics.