S&P 500 may face selling pressure as systematic funds reach full exposure
Investing.com - JPMorgan raised its price target on RENK Group AG (ETR:R3NK) to EUR90.00 from EUR87.50 on Wednesday, while maintaining an Overweight rating on the stock.
The investment bank increased its earnings per share estimates for 2025-2030 by 2% to 18%, with the new 2027-2029 estimates running 8% to 13% above Bloomberg median consensus.
RENK’s share price has declined 19% since its peak on June 3, 2025, which JPMorgan attributes to some investors rotating away from short-cycle defense investments focused on land-based warfare toward long-cycle defense sectors such as air defense systems and electronics.
The firm expressed disagreement with this rotation away from RENK, noting its bullish stance on the entire defense sector and highlighting Germany’s imminent program to purchase new armored vehicles.
JPMorgan expects RENK to be a major beneficiary of German defense spending over at least the next five years, with the new price target representing a potential 29% upside over the next 18 months.
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