Rheinmetall RNM.DE remains a leading arms supplier to the German Bundeswehr. The company manufactures and services advanced combat systems, armored vehicles, howitzers, tanks and drones:
- Shares gained following the outbreak of war in Ukraine. An increase in Germany's defense spending to 3% of GDP caused the company's shares to surge;
- The company will supply an additional 100 Boxer armored vehicles to the UK Ministry of Defense. The total contract is for over 520 vehicles. The company has started series production, most of the ordered vehicles will be manufactured in the UK thanks to the Organization for Joint Armament Cooperation, which links European countries in defense;
- An additional 1,500 vehicles in dozens of different versions have been ordered by several countries including Australia, the Netherlands, Lithuania and the UK
- Rheinmetal's CEO reported that the company is preparing to buy a significant stake in Italian company Leonardo, which produces advanced space systems, software and combat platforms;
Rheinmetall shares RHM.DE, D1 interval. The company's shares have been moving in a strong uptrend since the Russia-Ukraine war started. The company has increased its valuation by nearly 600% from March 2020 lows. With rising geopolitical tensions and a surge in defense spending in Germany, the company may increase valuation. On the other hand, should downward correction occur, then nearest support is located around $174.00, which coincides with the 23.6% Fibonacci retracement of the upward wave. Source: xStation5
