Rheinmetall Stock Soars as Defense Company Projects Fivefold Sales Increase by 2030
Rheinmetall's Sales Forecast: The German defense company Rheinmetall expects its sales to increase from approximately 10 billion euros in 2024 to around 50 billion euros by 2030, driven by high demand for weapons systems due to geopolitical tensions and the war in Ukraine.
Stock Performance: Shares of Rheinmetall rose by 3.4% to 1,782 euros, outperforming the DAX index, as the company benefits from increased defense spending in Europe following Russia's invasion of Ukraine.
NATO Spending Increase: NATO allies have agreed to raise defense spending to 5% of GDP by 2035, up from the previous target of 2%, which is contributing to Rheinmetall's growth.
Reorganization and New Unit: Rheinmetall announced a reorganization that includes the creation of a new naval unit, projected to generate 5 billion euros in sales by 2030, with plans for the unit to be operational by January.
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