Update shared on 24 Nov 2025
Fair value Decreased 7.73%RENK Group's analyst price target has been reduced from €70.23 to €64.80. This reflects analysts’ view that shares are now more fairly valued, following recent market weakness and tempered growth expectations.
Analyst Commentary
Recent analyst updates on RENK Group indicate a shift in sentiment following the company’s recent price movements and evolving market dynamics. Several firms now rate RENK shares as fairly valued, leading to a cluster of Neutral recommendations and price targets converging around €65 to €70.
Bullish Takeaways
- Analysts note that the European defense sector is currently experiencing its most significant rearmament cycle since the early Cold War, creating opportunities for growth.
- Bullish analysts acknowledge that after the recent market weakness, RENK’s valuation now more accurately reflects its fundamentals, reducing downside risk.
- There is a constructive outlook for RENK's sector overall, with expectations for ongoing demand, driven by broad geopolitical trends and increased defense budgets.
- Recent upgrades in ratings suggest that execution risk has decreased and profit expectations are more attainable at current valuation levels.
Bearish Takeaways
- Analysts express caution due to elevated stock valuations, noting that even with sector tailwinds, potential upside is now more limited.
- Growth expectations have been tempered, with analysts warning that much of the near-term optimism is already priced in.
- The current market environment warrants a selective approach, with some viewing execution risks in meeting ambitious growth targets.
- Uncertainties related to macroeconomic and political factors continue to weigh on RENK’s long-term outlook and could impact performance.
What's in the News
- RENK Group is actively seeking acquisitions and investments, with a focus on technology and potential targets in the U.S. Navy domain. This was highlighted by CEO Dr. Alexander Sagel during the Capital Markets Day 2025. (RENK Capital Markets Day 2025)
- The company has confirmed its earnings guidance for fiscal year 2025 and continues to forecast revenue exceeding €1.3 billion. (Company Guidance)
- RENK Group reiterated its revenue guidance for the year 2024, maintaining previous forecasts for year-end results. (Company Guidance)
- RENK Group AG (XTRA:R3NK) has been added to the FTSE All-World Index (USD). (FTSE Index Update)
Valuation Changes
- The consensus analyst price target, previously €70.23, has fallen to €64.80. This reflects a more cautious valuation outlook.
- The discount rate has risen slightly from 6.30% to 6.32%, indicating a marginal increase in perceived investment risk.
- Revenue growth expectations have fallen from 18.47% to 16.97%, suggesting slower anticipated business expansion.
- Net profit margin forecasts have decreased modestly from 11.93% to 11.64%, pointing to slightly lower profitability projections.
- The future P/E ratio is down from 33.66x to 32.42x, showing a small reduction in RENK Group’s forward earnings multiple.
Disclaimer
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