From Morningstar: 2025-03-19 06:09:00

Fears of US NATO commitment waning boost UK and European defense stocks. Rheinmetall stock now five-star with highest fair value estimate. Rolls-Royce and Thales remain four-star stocks. BAE Systems, Leonardo, and SAAB are three-star stocks. Uncertainty persists over order books and revenue. Analysts monitor for revisions.

Rheinmetall stock surges due to European defense spending boost. Stock price up 194.38% in past year. Morningstar fair value estimate raised to €2,220. Europe projected to prioritize inventory replenishment, creating $1.8 trillion equipment spending opportunity by 2030. Rheinmetall now top stock pick in European defense sector.

Rolls-Royce stock turnaround attributed to defense order book reaching record £9.2 billion. CEO’s leadership praised for financial strength and value creation. Stock value up 103.95% since March 2024. Company meets mid-term targets early, fair value estimate raised to £9.60. Increased defense spending in UK and Europe beneficial.

Defense stocks rally due to geopolitics and threat of conflict. Recent rallies linked to Russia-Ukraine conflict and Hamas-Israel attack. Defense stock rallies rare and unpredictable. European contractors benefit from increased European government spending. Investors cautioned against predicting future rallies. Fundamental factors like orders and contracts most important for investors.



Read more at Morningstar: European Defense Stocks Have Surged. Are They Still…