DAX-40-listed Rheinmetall AG (DE:RHM) has recorded a growth of 250% in its share price in the last three years. Analysts believe there is further potential for growth and have assigned a Strong Buy rating to the stock. Additionally, TipRanks’ Technical Analysis supports this outlook with a Buy rating within a one-week timeframe.
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Rheinmetall is a manufacturer and supplier of systems and equipment for multiple industries, including automotive, security, and civil sectors. With operations spanning 33 countries, the company enjoys a robust global presence.
Let’s dig deeper into the numbers.
Technical Analysis
According to the technical analysis of the RHM stock, the overall summary indicates a Buy in the timeframe of one week. It is based on Buy signals from both the moving averages and oscillators. The summary has a total of 11 bullish, four neutral, and seven bearish signals.
The stock’s RSI (relative strength index) of 38.79 suggests neutral action for a 1-week period.
More Bullish Factors
Recently, Rheinmetall’s CEO Armin Papperger expressed his optimism about the company’s stock and expects a potential increase in the stock’s market value. The company is expecting a “valuation of €17 billion in the medium term,” up from the current value of €10.5 billion.
In its last reported earnings report for the first quarter of 2023, the company’s order backlog grew by 8% to €28 billion. Rheinmetall maintains a positive outlook for its full-year 2023 figures, anticipating an increase in orders for the year. The company expressed that changes in defense policy have been advantageous, bolstering its capabilities in security-related products within Germany and its partner nations.
Post results, 19 days ago, Daniela Costa from Goldman Sachs reiterated her Buy rating on the stock, predicting an upside of 22%.
Is Rheinmetall a Good Buy?
On TipRanks, RHM stock has a Strong Buy rating backed by nine Buy and one Hold recommendations.
The average stock forecast is €292.2, which shows an upside potential of 18%. The target price has a high forecast of €322 and a low forecast of €233.
Conclusion
Rheinmetall has delivered a strong performance in its recent results and has maintained a positive outlook for the rest of 2023. The stock has garnered a Strong Buy rating from analysts and a Buy signal from technical analysis, making it an appealing choice in the German market.
