From Morningstar: 2025-03-19 05:19:00

Rheinmetall’s fair value estimate has been raised to EUR 2,220 from EUR 1,310 due to spending increases by countries and the share allocated to equipment. European defense spending is projected to reach 3.2% of GDP by 2030 and 3.5% by 2032, with equipment spending expected to rise to 50% of budgets in 2025-26.

Germany’s defense spending is estimated to reach 3.5% by 2029-30, with Rheinmetall capturing a significant portion of the increase. A proposal to exempt defense spending above 1% of GDP from debt limits could lead to a cumulative $1.8 trillion opportunity in equipment spending by 2030, with Germany at the forefront.

Rheinmetall is expected to capture around 21% of the European market’s equipment spending by 2030, excluding France. The company’s market share aligns with its own estimates of EUR 300 billion-EUR 400 billion and 20%-23% market share. The rise in defense spending across Europe presents significant growth opportunities for Rheinmetall.



Read more at Morningstar: Rheinmetall: Sharply Higher Fair Value on Defense…