Staggering setback announced!

Rheinmetall, a leading player in the global defense industry, is poised for significant growth in the coming years. The company's expected sales for the current year are around 12.5-12.7 billion €, according to recent reports.

This optimistic outlook is supported by various institutions, including market analysts applying trend-following strategies, Deutsche Volksbanken und Raiffeisenbanken (BVR), and DZ Bank. These entities, among others, highlight Rheinmetall's recent strong stock performance and growing economic optimism in Germany, which may positively affect industries such as defense. Factors such as increased military budgets due to Germany's "Zeitenwende" defense shift and substantial order growth potential reinforce this outlook.

The Berlin government is largely in agreement on the special fund for defense and security, suggesting a quick resolution to rearmament issues. This agreement could lead to increased investment in defense spending, particularly benefiting Rheinmetall.

In the past five days, Rheinmetall has gained 5.65%, and over the past four weeks, it has risen by +5.42%, despite recent weakness. Despite this, the shares of defense companies like Rheinmetall and Hensoldt have weakened, with Rheinmetall falling by over 2.5% and Hensoldt dropping by -2.69%. However, Rheinmetall's long-term upward trend remains intact, with a lead of 33.56% over the GD 200.

Rheinmetall is expected to generate a significant portion of its sales in Germany, with the estimate of this share growing to over 25%. This domestic strength, coupled with the company's strong performance, suggests a promising future for Rheinmetall.

Moreover, Rheinmetall's current P/E ratio is around 6, which is quite low compared to other companies in the defense industry. This could indicate that Rheinmetall's stock may be undervalued. Analysts' price targets for the current year are set for at least 2,000 euros, with a consensus of around 2,100 euros. Notably, previous analyses suggest that the notations could climb to 3,000 euros.

Rheinmetall's stock has risen by 181% since January 1st, outperforming the market significantly. Another defense company, Renk, has also achieved a very impressive result during this period, rising by 265%.

Looking ahead, Rheinmetall expects orders worth up to 300 billion euros from the EU by the year 2030. If Rheinmetall operates profitably, profits of approximately 30 billion euros are possible by 2030. Spread over six years, this could represent an increase of 5 billion euros in profits.

In conclusion, Rheinmetall's future looks bright, with strong support from various institutions, a growing domestic market, and a promising outlook for defense spending. Despite recent weakness, Rheinmetall's stock remains undervalued, according to some analysts, making it an attractive investment opportunity for those interested in the defense sector. The federal government's budget negotiations and the resolution of rearmament issues could further boost Rheinmetall's growth in the coming months and years.