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Investing.com - Kepler Cheuvreux has reiterated its Buy rating on Rheinmetall AG (ETR:RHM) (OTC:RNMBY) with a price target of EUR2,091.00, following the company’s conference call regarding its planned acquisition of NVL.
The German defense contractor faces a substantial addressable market of EUR125 billion in Europe through 2035, with Germany serving as the primary customer, according to Kepler Cheuvreux’s analysis. An additional EUR180 billion opportunity exists in international markets during the same period.
Rheinmetall could access another EUR36 billion in European markets and approximately EUR140 billion internationally through potential portfolio expansion, particularly in naval systems following the NVL acquisition.
The research firm notes that market growth is driven by the "clear need to expand naval forces in regions with an elevated risk of conflict, such as Europe and APAC."
For international growth opportunities, Rheinmetall plans to pursue partnerships with local manufacturers rather than independently entering markets, a strategy consistent with its current approach in land systems.
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