Exane favours Rheinmetall among German defence names

RENK AG

06/06/2025 10:40

** BNP Paribas Exane continues to favour "buy"-rated Rheinmetall RHMG.DE among German defence stocks, citing upsides from its strategic cooperations

** These stocks have gained 50-60% since April driven by geopolitical and domestic momentum, it notes

** It says that in light of the planned defence spending increases, its view on Hensoldt was too bearish, raising it to "neutral" from "underperform"

** RENK's KPIs, valuation and risk-reward meanwhile are less attractive compared to peers, Exane says, downgrading it to "underperform" from "neutral"

** Commenting on NATO's increased defence spending, the broker says "the overall commitment has firmly edged up"

** It shifts its valuation basis for its coverage by two years until 2030 to incorporate the expected EBITA boost and reduced risk view

($1 = 0.8750 euros)

 (Reporting by Maria Rugamer)

 ((Maria.Rugamer@thomsonreuters.com))