Time is running out quickly...
Germany's leading stock market magazine, DER AKTIONÄR, has announced that it has purchased shares for its real AKTIONÄR portfolio, marking a significant move in the defense industry. The acquisition includes several key shipyards across Germany, Europe, and beyond, as Rheinmetall, the country's largest defense conglomerate, prepares to expand into the military shipbuilding sector.
The deal involves the acquisition of the marine division of the Lürssen Group NVL, which includes shipyards such as Blohm+Voss and Norderwerft in Germany, Peene shipyard in Wolgast, Mecklenburg-Vorpommern, Neue Jadewerft in Wilhelmshaven, as well as locations in Bulgaria, Croatia, Egypt, and Brunei.
Rheinmetall, currently the top performer in the DAX with a year-to-date gain of approximately 212 percent, aims to become the 'global defense champion' with this acquisition. The company is already a significant player in the defense industry, supplying the German navy and other nations with various equipment. However, this acquisition marks a new step towards self-production of warships.
The acquisition of NVL, which currently has orders totaling around seven billion euros and revenues of around one billion euros in 2021, is expected to boost Rheinmetall in the coming years. The deal, valued at around 1.35 billion euros, is expected to be completed in the first quarter of 2026, pending approval from antitrust authorities.
The growth potential in the area of autonomous ships is significant, as NVL holds stakes in the British Kraken Technology Group, which specializes in the development of unmanned marine systems. This could potentially lead to the development of advanced, autonomous warships in the future.
Following the announcement of the NVL deal, the Rheinmetall share reached a new all-time high of 1,983 euros. DER AKTIONÄR is confident that the Rheinmetall share will continue to be one of the high-flyers on the German stock market in the coming months, with a price target of 2,250 euros. The 2,000 euro mark for Rheinmetall is only about four percent away and should be broken in a favorable market environment.
Analysts, including Barclays and JPMorgan, see further upside for Rheinmetall, with price targets of 2,050 euros and 2,250 euros respectively. However, it's important to note that Rheinmetall does not currently build its own ships but has business relationships with the navy, such as providing ship guns and laser modules.
It's also worth mentioning that there is a potential conflict of interest, as shares of Rheinmetall are held in a real portfolio of the Börsenmedien AG, the publisher of DER AKTIONÄR.
As Rheinmetall continues to expand and innovate in the defense industry, it will be interesting to see how this acquisition impacts the company and the broader market in the coming years.
