The defense industry is currently experiencing a boom, and the shares of Rheinmetall ($RHM (-1,89 %) ) and HENSOLDT ($HAG (+0,92 %) ) are at the forefront! 📈 Analysts are optimistic and have raised their price targets for Rheinmetall to up to 1,085 euros. The reason? "Tectonic shifts" in European defense policy, which are being reinforced by pressure from the USA.

The challenges facing Europe are enormous: rising defense spending, the reconstruction of the Ukrainian army and military support following a possible peace agreement. This could further boost growth in the sector.

Rheinmetall's DAX share price even touched the 1,000 euro mark for a while before falling slightly. In the current year, it has already gained 55%! What do you think of this development? Is now the right time to invest, or should we wait and see? 🤔

$HAG (+0,92 %)
$RHM (-1,89 %)

Porsche AG under pressure + Amazon beats analysts' estimates in the fourth quarter + Armaments group Hensoldt reports orders worth billions + USA: Initial jobless claims rise more than expected

Porsche AG $P911 (+0,35 %)under pressure

• Shareholders from the Volkswagen Group environment are unlikely to have a tailwind on Friday.
• At the sports car subsidiary Porsche AG, the outlook given the previous evening after the close of trading was disappointing, resulting in a 1.2 percent drop at the broker Lang & Schwarz.
• The Group holding company Porsche SE followed suit by announcing higher write-downs on the carrying amounts of its core investments.
• The share price fell by half a percent in pre-market indications.
• Volkswagen shares, which were valued at 0.3 percent down at Lang & Schwarz, could also be affected.
• Porsche AG is spending money to defend itself against the crisis, but this is clouding the outlook, which according to traders is well below expectations.
• Porsche expects sales of 39 to 40 billion euros in 2025 and an operating return on sales of 10 to 12 percent.
• Group CEO Oliver Blume is therefore accepting a significant drop in the operating margin, but the dividend should remain stable.
• In an initial reaction, JPMorgan analyst Jose Asumendi spoke of a positive step in order to make the necessary investments in the powertrain strategy.
• These should enable the car manufacturer to return to growth over the next 24 months.

Amazon $AMZN (-2,39 %)exceeds analysts' estimates in the fourth quarter

• Amazon's fourth-quarter earnings per share of USD 1.86 beat analysts' estimates of USD 1.47.
• Sales of USD 187.8 billion above expectations of USD 187.33 billion.
• Wall Street is also watching some other numbers in the report:
• Amazon Web Services: $28.8 billion, according to StreetAccount
• Advertising: $17.4 billion, according to StreetAccount
• Analysts expect sales growth of about 10% this quarter, which includes results from the holiday shopping season. Online spending rose nearly 9% to $241.1 billion in November and December, according to data from Adobe Analytics, which tracks sales on retailers' websites.
• This is slightly above analysts' forecasts, which had expected sales of USD 240.8 billion.
• According to FactSet estimates, operating profit in the fourth quarter is expected to increase by 44% year-on-year to around USD 19 billion.

Defense contractor Hensoldt $HAG (+0,92 %)reports orders worth billions

• The defense electronics specialist Hensoldt received orders worth billions over the turn of the year.
• In the months from October to January, orders totaled more than 1.4 billion euros, as the company announced on Thursday in Taufkirchen near Munich.
• The orders reportedly included the radar for the Eurofighter fighter jet, systems for the Leopard 2 A8 main battle tank and the modernization of the German Armed Forces' Electronic Warfare Center (ZEK).

USA: Initial jobless claims rise more than expected

• In the USA, initial jobless claims have risen unexpectedly sharply.
• Their number rose by 11,000 to 219,000 last week, as announced by the Department of Labor in Washington on Thursday.
• Economists had on average only expected an increase to 213,000 applications.
• The previous week's figure was revised slightly upwards, by 1,000 to 208,000.
• Despite the increase, the number of applications for aid is still estimated to be low.
• Experts at Landesbank Hessen-Thüringen continue to see no indications of a significant slowdown in the increase in employment.
• At the beginning of the year, applications for assistance reached their lowest level for a year at 203,000.
• The weekly initial claims are observed on the financial markets because they are an indicator of general developments on the US labor market.
• In general, labor market data plays an important role in the Fed's interest rate decisions.
• Last week, the Fed kept key interest rates stable.

Friday: Stock market dates, economic data, quarterly figures

• ex-dividend of individual stocks
• Costco Wholesale USD 1.16

• Quarterly figures / company dates USA / Asia
• 05:00 Mazda quarterly figures

• Quarterly figures / company dates Europe
• 07:30 Talanx preliminary annual results
• 08:00 Yara annual figures
• 09:00 Loreal AGM
• No time specified: Konecranes | Banca Monte dei Paschi annual figures

Economic data

08:00 DE: Trade balance December and year 2024 Trade balance calendar and seasonally adjusted FORECAST: +16.8 bn euros previously: +19.7 bn euros Exports FORECAST: -0.5% yoy previously: +2.1% yoy Imports FORECAST: +1.8% yoy previously: -3.3% yoy

08:00 DE: Production in the manufacturing sector December and year 2024 seasonally adjusted OUTLOOK: -0.9% yoy previous: +1.5% yoy

14:30 US: Labor market data January employment ex agriculture PROGNOSE: +169,000 yoy previous: +256,000 yoy Unemployment rate PROGNOSE: 4.1% previous: 4.1% Average hourly earnings PROGNOSE: +0.3% yoy/+3.7% yoy previous: +0.3% yoy/+3.9% yoy

16:00 US: Index consumer sentiment Uni Michigan (1st survey) February FORECAST: 71.3 previous: 71.1

21:00 US: Consumer Credit 12/24

Untimed US: First meeting between President Trump and Japan's Prime Minister Shigeru Ishiba in Washington

Analyst updates, 17.12.

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• - UBS raises the price target for AMAZON from USD 230 to USD 264. Buy. $AMZN (-2,39 %)
• - CITIGROUP raises the target price for ALLIANZ SE from EUR 286 to EUR 314.40. Neutral. $ALV (-0,14 %)
• - BARCLAYS raises the target price for DHL GROUP from EUR 37.50 to EUR 38. Equal-Weight. $DHL (+0,55 %)
• - DEUTSCHE BANK RESEARCH upgrades AIRBUS from Hold to Buy and raises target price from EUR 155 to EUR 185. $AIR (-3,2 %)
• - BERENBERG raises the price target for MUNICH RE from EUR 525 to EUR 552. Hold. $MUV2 (-0,6 %)
• - KEPLER CHEUVREUX raises the price target for ADESSO from EUR 80 to EUR 100. Hold. $ADN1 (-0,77 %)
• - WARBURG RESEARCH raises the price target for FMC from EUR 31 to EUR 36. Sell. $FME (+0,32 %)
• - DEUTSCHE BANK RESEARCH raises the target price for AUTO1 from EUR 12 to EUR 20. Buy. $AG1 (+0,69 %)
• - DEUTSCHE BANK RESEARCH raises the price target for MTU from EUR 329 to EUR 337. Hold. $MTX (-3,41 %)
• - DEUTSCHE BANK RESEARCH raises the price target for HENSOLDT from EUR 37 to EUR 41. Buy. $HAG (+0,92 %)
• - DEUTSCHE BANK RESEARCH raises the target price for ROLLS-ROYCE from GBP 5.55 to GBP 6.30. Buy. $RR. (-1,27 %)
• - BOFA raises the target price for INFINEON from EUR 36 to EUR 40. Buy. $IFX (-1,86 %)
• - BOFA raises the price target for STMICRO from EUR 29 to EUR 30. Buy. $STMPA (-1,92 %)
• - BOFA raises the target price for NOKIA from EUR 4.07 to EUR 4.58. Neutral. $NOKIA (-0,57 %)

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• - JPMORGAN downgrades TRANSMEDICS from Overweight to Neutral and lowers target price from 116 USD to 75 USD. $TMDX (-4,22 %)
• - BOFA lowers the price target for SILTRONIC from EUR 59 to EUR 46. Underperform. $WAF (+1,46 %)
• - HSBC lowers the price target for CARL ZEISS MEDITEC from EUR 66 to EUR 54. Hold. $AFX (-0,59 %)
• - KEPLER CHEUVREUX lowers the price target for HEIDELBERGER DRUCK from EUR 1.25 to EUR 1. Hold. $HBGRY (+0,93 %)
• - KEPLER CHEUVREUX lowers the price target for EVONIK from EUR 25 to EUR 21. Buy. $EVK (+1,07 %)
• - KEPLER CHEUVREUX lowers the price target for NORDEX from EUR 17 to EUR 14. Buy. $NDX1 (+0,87 %)

Analyst updates, 16.12.

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• JEFFERIES raises the price target for AMAZON from USD 235 to USD 275. Buy. $AMZN (-2,39 %)
• CITIGROUP raises the price target for MUNICH RE from EUR 475 to EUR 522. Neutral. $MUV2 (-0,6 %)
• BERENBERG raises the price target for RHEINMETALL from EUR 655 to EUR 750. Buy. $RHM (-1,89 %)
• WARBURG RESEARCH raises the price target for PORSCHE SE from EUR 36 to EUR 37. Hold. $PAH3 (+0,48 %)
• WARBURG RESEARCH raises the price target for HENSOLDT from EUR 40 to EUR 42. Buy. $HAG (+0,92 %)
• JEFFERIES raises the target price for SHELL from GBP 31 to GBP 32. Buy. $SHEL (-1,69 %)

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• BERNSTEIN lowers the price target for PORSCHE SE from EUR 46 to EUR 42. Market Perform. $PAH3 (+0,48 %)
• HSBC downgrades SAP to Hold. Target price EUR 260. $SAP (-1,87 %)
• LOOP CAPITAL downgrades NETFLIX to Hold. Target price 950 USD. $NFLX (-1,73 %)
• EXANE BNP lowers the price target for MERCEDES-BENZ from EUR 57 to EUR 54. Underperform. $MBG (-1,31 %)
• JEFFERIES downgrades FORD from Hold to Underperform and lowers target price from USD 12 to USD 9. $F (-0,67 %)
• CITIGROUP lowers the price target for THYSSENKRUPP from EUR 5.80 to EUR 5.50. Buy. $TKA (+0,54 %)
• STIFEL lowers the price target for AIXTRON from EUR 20 to EUR 18. Hold. $AIXA (-2,09 %)
• PARETO downgrades TRATON to Hold. Target price EUR 32.50. $8TRA (-0,07 %)
• DEUTSCHE BANK RESEARCH lowers the target price for KINGFISHER from GBP 3.50 to GBP 3.40. Buy. $KGF (-0,47 %)
• METZLER lowers the price target for CARL ZEISS MEDITEC from EUR 104 to EUR 90. Buy. $AFX (-0,59 %)
• BERENBERG lowers the price target for SCHOTT PHARMA from EUR 32 to EUR 28. Hold. $1SXP (+1,99 %)
• CITIGROUP downgrades 1&1 to Neutral. Target price EUR 15. $1U1 (+1,37 %)

Rheinmetall share: JP Morgan Chase & Co. issues Overweight rating

$RHM (-1,89 %)
$HAG (+0,92 %)
$LMT (+2,16 %)
$RR. (-1,27 %)

The US bank JPMorgan has left its rating for Rheinmetall at "Overweight" with a target price of 680 euros. Analyst David Perry discusses the exciting developments of the past 24 hours on Thursday morning. In the short term, he sees more uncertainty for the Düsseldorf-based company than for other European defense companies - due to a possible Ukraine ceasefire under Trump and the shaky coalition government in Germany. In the long term, however, he continues to see Rheinmetall as a winner with good prospects for many years to come.

#rüstung
#ukraine

The Rheinmetall-share was trading in red at 09:32 in XETRA trading, losing 0.3 percent to EUR 494.30. This means that the share still has an upside potential of 37.57 percent compared to the issued price target. The number of Rheinmetall shares traded to date amounts to 101,153. Since the beginning of 2024, Rheinmetall shares have risen by 74.1 percent. Rheinmetall is expected to present its next results for Q3 2024 on November 7, 2024.

Publication of the original report: 07.11.2024 / 07:31 / GMT First transmission of the original report: 07.11.2024 / 07:31 / GMT

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- DEUTSCHE BANK RESEARCH raises its price target for BMW from EUR 90 to EUR 95. Buy. $DBK (+0,12 %)

- BERNSTEIN raises the price target for QUALCOMM from USD 200 to USD 215. Outperform. $QCOM (-4,11 %)

- UBS raises the price target for LYFT from USD 13 to USD 18. Neutral. $LYFT (-2,42 %)

- BARCLAYS raises the price target for SIEMENS HEALTH from EUR 60.50 to EUR 62.50. Overweight. $SHL (+0,45 %)

- WARBURG RESEARCH raises the price target for KONTRON from EUR 28 to EUR 28.40. Buy. $KTN (-1,29 %)

- UBS upgrades KINGSPAN GROUP from Neutral to Buy. Target price 90 EUR. $KRX (+12,9 %)

- WARBURG RESEARCH raises the price target for ZEAL NETWORK from EUR 59 to EUR 64. Buy. $TIMA (-1,47 %)

- GOLDMAN raises the price target for VONOVIA from EUR 42.70 to EUR 43.70. Buy. $VNA (+0,26 %)

- BARCLAYS raises the price target for AHOLD DELHAIZE from EUR 30 to EUR 31. Equal-Weight. $AD (+0,12 %)

- BARCLAYS raises the target price for FMC from EUR 38.50 to EUR 39. Equal-Weight. $FMC (+0,25 %)

- JPMORGAN raises the target price for COMMERZBANK from EUR 18 to EUR 18.40. Overweight. $CBK (-0,9 %)

- JPMORGAN raises the target price for PUMA SE from EUR 40 to EUR 44. Neutral. $PUM (+1,1 %)

- JPMORGAN raises the target price for JUST EAT TAKEAWAY from GBP 13.96 to GBP 14.15. Overweight. $TKWY (+0,67 %)

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- JEFFERIES downgrades PALANTIR from Hold to Underperform. Target price USD 28. $PLTR (-3,33 %)

- DEUTSCHE BANK RESEARCH lowers the price target for NOVO NORDISK from DKK 1100 to DKK 1000. Buy. $NOVO B (+5,32 %)

- RBC lowers the price target for NIKE from 82 USD to 80 USD. Sector Perform. $NKE (-0,48 %)

- ODDO BHF downgrades ASM INTERNATIONAL to Outperform. Target price EUR 960. $ASM (-0,78 %)

- KEPLER CHEUVREUX downgrades HENSOLDT from Buy to Hold. Target price EUR 34. $HAG (+0,92 %)

- DEUTSCHE BANK RESEARCH lowers the price target for ZALANDO from EUR 40 to EUR 36. Buy. $ZAL (-1,25 %)

- DEUTSCHE BANK RESEARCH lowers the price target for VESTAS from DKK 165 to DKK 150. Hold. $VWS (-1,47 %)

- BOFA downgrades SIEMENS ENERGY from Buy to Neutral. Target price EUR 40. $ENR (-4,27 %)

- METZLER lowers the price target for VONOVIA from EUR 28.50 to EUR 28. Sell. $VNA (+0,26 %)

- BARCLAYS lowers the price target for TEAMVIEWER from EUR 18 to EUR 15.50. Overweight. $TMV (+1,21 %)

- WARBURG RESEARCH lowers the price target for KLÖCKNER & CO from EUR 6 to EUR 5.70. Buy. $KCOB

- HAUCK AUFHÄUSER IB lowers the target price for NORMA GROUP from EUR 32 to EUR 27. Buy. $NOEJ (-2,91 %)

- WARBURG downgrades EDAG ENGINEERING from Buy to Hold and lowers target price from EUR 13 to EUR 9.50. $ED4 (-0,59 %)

- LBBW lowers the price target for ALLGEIER from EUR 24 to EUR 20. Buy. $AEIA

- BARCLAYS lowers the price target for HENKEL from EUR 79 to EUR 77. Equal-Weight. $HEN (-0,41 %)

- BERENBERG lowers the price target for KRONES from EUR 157 to EUR 154. Buy. $KRN (+0,97 %)

Hensoldt optimistic for 2024 after growth $HAG (+0,92 %)

Rising military spending following the Russian invasion of Ukraine is keeping defense supplier Hensoldt on course for growth.

After significant growth in the first nine months, CFO Christian Ladurner is also optimistic for the fourth quarter. CEO Oliver Dörre believes that the radar and sensor specialist, in which the Italian armaments group Leonardo also holds a stake, is now in a position of strength with regard to the consolidation of the industry: "I say quite clearly: we want to shape this process and not be shaped." In the first nine months of 2024, incoming orders rose to around 1.86 billion euros, partly due to orders from the German Armed Forces, Hensoldt announced on Wednesday. The order backlog thus totaled 6.5 billion euros.

Turnover climbed by 21.3 percent to around 1.4 billion euros. Hensoldt worked more profitably

The adjusted operating profit (EBITDA) improved by 24.1 percent to 187 million euros.

The Management Board confirmed the outlook, and the ratio of incoming orders to sales (book-to-bill ratio) for the financial year was specified at the upper end at around 1.2.

Overall, Hensoldt expects "continued positive business development" for 2024. For the year as a whole, the management continues to expect sales of around EUR 2.3 billion and an adjusted EBITDA margin of 18 to 19 percent. "We will also see the momentum we saw in the first nine months in the final quarter," Ladurner told Reuters.

The Russian invasion of Ukraine had brought about a turnaround for Western arms companies such as Hensoldt and Rheinmetall. The industry is needed to strengthen the Bundeswehr and the armed forces of the NATO states and Ukraine.

At the same time, there are calls for alliances among European arms companies - also in order to keep up with the US arms giants. Rheinmetall and Hensoldt shareholder Leonardo recently forged an alliance to build tanks.

"We make sensors for tanks and key optronic components for the Leopard are made by Hensoldt," said Dörre: "These are topics that we are also discussing with our shareholder Leonardo." "Wherever we can add value with regard to the products, we will never turn down cooperation talks," he added. However, these would have to bring "real added value". Hensoldt will not do anything "for the sake of pure consolidation". Instead, Hensoldt is looking around for takeovers itself. "Technology and internationalization - these are the drivers for possible acquisitions," emphasized Dörre.