Figma Shares Indicated To Open $105/$110
On Thursday, Morgan Stanley (NYSE:MS) increased its price target on shares of Rheinmetall (ETR:RHMG) AG (RHM:GR) (OTC: RNMBY) to EUR1,300 from the previous EUR900. The firm has maintained an Overweight rating on the stock. The adjustment follows an analysis by Morgan Stanley, which projects significant growth in the European Union Equipment addressable market, potentially benefiting Rheinmetall.
Marie-Ange Riggio of Morgan Stanley noted that the current addressable market, at 2% of Europe’s GDP, stands at $46 billion, with Rheinmetall capturing approximately 12% market share in 2024. The firm anticipates that Rheinmetall will experience market share gains in the short term due to an increased investment by governments in their land capabilities.
Morgan Stanley forecasts that Rheinmetall’s market share could increase to 18% by 2030. The firm’s bottom-up analysis suggests a 40% upside potential to their current earnings per share (EPS) estimates for 2030, which are based on the assumption that the addressable market will be 2% of GDP. This is in line with company guidance and consensus.
The report indicates that if the addressable market reaches 3% of GDP, it could nearly double the current price target to EUR2,000, based on the 2030 figures. Additionally, Morgan Stanley has set a new bull case price target of EUR1,650, based on its 2027 estimates. The firm’s positive outlook reflects the potential for Rheinmetall to significantly increase its presence in the defense market over the coming years.
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