Hensoldt shares soar 13% after upgrade and €110 price target boost

Published 02/06/2025, 11:38
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Investing.com -- Shares of Hensoldt AG (ETR:HAGG) jumped more than 13% on Monday after the brokerage upgraded the stock rating to “overweight” from “neutral” and nearly doubled its price target from €50 to €110. 

The revised target implies a potential upside of approximately 20% over the next 18 months. The upgrade comes amid growing confidence in Hensoldt’s long-term growth trajectory. 

The company’s latest guidance, released on May 7, forecasts an organic sales compound annual growth rate (CAGR) of at least 15% through 2030. 

Looking beyond that, the period between 2031 and 2035 is expected to usher in an even more dynamic growth phase, reinforcing the bullish outlook.

Analysts also anticipate an improvement in the company’s profitability, projecting a roughly 200 basis-point increase in EBITA margins and solid free cash flow generation.

Adjustments to earnings per share estimates were made for the years 2025 through 2027, including an 8% decrease for 2025, a minor 2% reduction for 2026, and a 5% upward revision for 2027. Fresh EPS projections were also introduced for 2028 to 2030.

The new price target reflects a shift to using higher valuation multiples, in line with benchmarks applied to industry peers such as Rheinmetall (ETR:RHMG) and Renk Group, both of which also carry an “overweight” rating.

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