On Thursday afternoon, March 27, 2025, the Rheinmetall share price experienced a slight decline, dropping by 0.2 percent to 1,350.50 EUR during the XETRA session. The stock fell to a low of 1,327.00 EUR after starting the day at 1,335.00 EUR. Despite this dip, the turnover in XETRA trading was notable, with 129,947 shares changing hands.
Earlier in the month, on March 19, 2025, the Rheinmetall share had reached a remarkable 52-week high of 1,483.00 EUR, marking a significant increase of 9.81 percent above its current price. In contrast, the stock saw a 52-week low of 437.50 EUR recorded on August 6, 2024, indicating a substantial 67.60 percent increase from that low to the present value.
Analysts are optimistic about the future of Rheinmetall, forecasting a dividend of 7.66 EUR per share for this year, an increase from the 5.70 EUR distributed to shareholders in 2023. Experts estimate the fair value of the shares at approximately 1,281.78 EUR, suggesting that the current price remains attractive for investors.
On March 12, 2025, the company released its earnings report for the quarter ending December 31, 2024, revealing earnings per share of 10.87 EUR, a significant increase from 7.44 EUR in the previous year’s quarter. The company reported a remarkable 36.16 percent increase in turnover, achieving 3.48 billion EUR compared to 2.56 billion EUR in the same quarter last year.
Looking ahead, the Q1 2025 balance sheet is expected to be published on May 8, 2025, with experts also anticipating the release of Q1 2026 results on April 30, 2026. Analysts estimate that the profit per share for Rheinmetall in 2025 will be around 29.90 EUR.
In the broader market context, the stock market reacted nervously to former President Donald Trump's announcement regarding an increase in trade tariffs on foreign cars to 25 percent. This news has caused some unrest among investors, particularly affecting market dynamics on Wall Street. However, amidst this turbulence, the Rheinmetall share has shown remarkable resilience, maintaining a high price level of 1,350 EUR and outperforming the overall market.
Both technical and fundamental analysts see potential for further price increases in the coming weeks and months. Rheinmetall stands to benefit significantly from ongoing discussions surrounding defense spending, especially following the German government's decision to allocate substantial funds for military contracts. This initiative, supported by the SPD, Union, and Greens, effectively circumvents the debt brake for defense spending, allowing for a budget of several hundred billion euros for military expenditures.
Analysts have been consistently adjusting their price targets upwards, with predictions suggesting that the share price could reach as high as 2,200 EUR in the short term, and potentially even 3,000 EUR by 2030. Such projections underscore the strong growth trajectory for Rheinmetall, which has seen its stock price soar by an impressive 123 percent since the beginning of 2025.
In terms of market capitalization, Rheinmetall now stands at 59.82 billion EUR, reflecting its position as Germany's largest defense contractor. The geopolitical landscape, particularly the shift in defense strategies following the Russian invasion of Ukraine, has acted as a significant growth driver for the company. This shift has prompted European nations, especially Germany, to reconsider their defense budgets, which had been significantly reduced since the end of the Cold War.
In addition to the positive outlook based on current events, investors are also exploring alternative investment strategies in Rheinmetall shares. For instance, bonus certificates with caps present an opportunity for investors to achieve high returns even if the stock loses more than a third of its current value. Following the release of strong financial results and revised forecasts, experts have reiterated their buy or hold recommendations for the Rheinmetall share, with price targets reaching up to 1,800 EUR.
One specific product gaining attention is the HSBC bonus certificate with cap on the Rheinmetall share (ISIN: DE000HT1XEY1), which has a bonus level and cap set at 1,750 EUR. The barrier for this certificate is activated until the valuation day, June 19, 2026, and is set at 875.00 EUR. Investors purchasing the certificate at a price of 1,349.02 EUR can anticipate a gross yield of 29.72 percent (equivalent to 24 percent per year), provided the share price remains above the barrier until the valuation date.
However, investors should be aware of the risks involved. If the Rheinmetall share price touches the barrier of 875.00 EUR before the valuation day and is listed below the cap on that day, investors will receive one share for each certificate held. If that share is sold at a price lower than 1,349.02 EUR, the investor will incur a loss.
This article does not constitute a recommendation to buy or sell Rheinmetall shares or related investment products. The accuracy of the data presented cannot be guaranteed. Nonetheless, the current market dynamics and the company's strong performance suggest a promising outlook for Rheinmetall and its investors.
