Leonardo DRS Shares Rise 24% Amid German Defense Spending Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 09 2026
0mins
Source: NASDAQ.COM
- Stock Performance: Leonardo DRS shares increased by 24% over the past year, with a nearly 303% return over five years, indicating its stable growth potential in the U.S. defense market.
- Industry Comparison: Rheinmetall's stock surged by 232% in the last year and approximately 1,880% over five years, highlighting its strong performance in the European defense sector.
- Defense Spending Commitment: The German government has pledged €650 billion over the next five years to meet NATO's defense spending target of 3.5% of GDP, which will further drive Rheinmetall's growth.
- Market Trends: As global attention on defense spending intensifies, the growth trajectories of both Leonardo DRS and Rheinmetall suggest increasing opportunities for investors in the defense industry.
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Analyst Views on DRS
Wall Street analysts forecast DRS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRS is 47.33 USD with a low forecast of 40.00 USD and a high forecast of 54.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 41.300
Low
40.00
Averages
47.33
High
54.00
Current: 41.300
Low
40.00
Averages
47.33
High
54.00
About DRS
Leonardo DRS, Inc. is a provider of advanced defense technology to the United States national security customers and allies around the world. It specializes in the design, development and manufacture of advanced sensing, network computing, force protection, and electric power and propulsion, and other mission-critical technologies. It is a provider of defense products and technologies that are used across land, air, sea, space, and cyber domains. Its segments include Advanced Sensing and Computing (ASC) and Integrated Mission Systems (IMS). The ASC segment designs, develops, and manufactures sensing and network computing technology that enables real-time situational awareness required for operational decision making and execution by its customers. The IMS segment designs, develops, manufactures, and integrates power conversion, control and distribution systems, ship propulsion systems, motors and variable frequency drives, force protection systems, transportation and logistics systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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