Rheinmetall Stock: Approaching €1500 Amid Growth Slowdown

The German defense giant Rheinmetall has experienced a remarkable surge in recent months, with its stock price nearing the €1500 threshold. Market experts are already discussing the possibility of a stock split to enhance trading liquidity as the shares continue their upward trajectory. However, despite being one of the absolute high-flyers on the German stock market until recently, signs of deceleration are emerging. The upward trend in defense stocks appears to be faltering – a phenomenon affecting not just Rheinmetall but the entire European defense sector including Hensoldt, BAE Systems, and Leonardo. The stratospheric rise of defense valuations, which benefited from increased military spending and a fundamental shift in European security policy following the Ukraine conflict, seems to be losing momentum.

Germany's "Glorious Four" Defense Players

Despite the recent pause in growth, Rheinmetall remains among the clear winners of the first quarter of 2025. Together with Renk, Thyssenkrupp, and Hensoldt, the Düsseldorf-based corporation forms what analysts call Germany's "Glorious Four" in the defense sector – a nod to America's "Magnificent Seven." These companies have recorded fairy-tale profits while other industries continue struggling with energy crisis aftereffects triggered by the Ukraine war. The pressing question for investors now becomes whether Rheinmetall can maintain its elevated valuation level or if a price collapse looms as defense euphoria potentially subsides.

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Source StockWorld