Kepler Cheuvreux upgrades RENK Group stock to Buy on defense spending outlook

Published 14/07/2025, 09:40
Kepler Cheuvreux upgrades RENK Group stock to Buy on defense spending outlook

Investing.com - Kepler Cheuvreux upgraded RENK Group AG (ETR:R3NK) from Hold to Buy on Monday, while significantly raising its price target to EUR85.00 from EUR50.00.

The German defense supplier’s shares have surged over 280% year-to-date, driven by investor expectations of a multi-year NATO rearmament cycle, according to the research firm’s analysis.

Kepler Cheuvreux noted that while the NATO June summit provided broad political support for increased defense spending, formal country-level NATO Capability Targets are not expected until year-end at the earliest.

The research firm conducted a bottom-up assessment of likely tracked vehicle orders across major European NATO members, evaluating which countries are best positioned to drive future demand for main battle tanks and infantry fighting vehicles.

Based on this analysis, Kepler Cheuvreux reassessed RENK Group’s earnings potential and embedded optionality, concluding there remains additional upside despite the stock’s substantial year-to-date performance.

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