Investors in the German warship shares reserved a big “cold” industrial Following the statements of the President of the USADonald Trump, on Sunday, July 27, 2025, according to which Europeans will buy additional US equipment.
The customs agreement between the United States and the European Union (EU) provides companies more planning. The deal supported Europe’s stock markets and Germany’s top index, DAX, though it finally closed with a negative sign. On the contrary, the shares of the war industries declined significantly in the commencement of transactions.
Rheinmetall’s shares lost more than 4% yesterday morning, while Renk and Hensoldt dropped 7.5% and 6% percent respectively. Remained significantly lower shortly before the end of transactions.
The price losses of the above shares -as investors see that Trump’s statements do not favor the European Defense Industry as Newsit.gr had pointed out immediately Following the announcement of the relevant agreement – They came from US President Donald Trump’s statement that European countries should buy US defense equipment “in large quantities” in the future.
Branch analysts, such as Stefan Maichl of Landesbank Baden-Württemberg (LBBW), characterize it as profits, according to Handesblatt. Rheinmetall’s shares have increased by nearly 180% only this year (due to the routing of the Mammoth package for Germany’s re -equipment), while those of the Renk Battle Battle Transfer Manufacturer and the company specializing in Hensoldt radar have increased by 270%.
The profits are ‘unjustified’
Given this framework, Maichl is not surprising that investors are making some defense earnings after Trump’s statements.
However, he does not consider this justified this great profit.
Trump’s statements are very vague – it is not clear what is meant by the term “large quantities” nor what defensive equipment will be ordered in the future, Maichl stresses.
It is clear that Europe depends on US military equipment and that will not change. The military capabilities of Stealth Multiple Role Fighter aircraft, such as the F-35 and the Patriot anti-aircraft missile system, cannot be replaced in Europe in the short term.
On the other hand, the Bundeswehr will not abandon its orders for land systems, armored vehicles and ammunition, nor will the main Leopard 2 chariot will be replaced.
Unchanged estimates
Other experts share this view. According to the Bloomberg Intelligence Service, no bank changed its evaluation of defense companies such as Rheinmetall, Renk or Hensoldt on Monday (29.7.25).
In view of the increased threat from Russia and the necessary reinforcement of domestic defense potential, DZ Bank’s Holger Schmidt, for example, is expecting “a sharp increase in defense spending in Germany and NATO European countries for years.”
In view of this, analysts are particularly positive for Rheinmetall’s shares. According to Bloomberg, 18 of the 22 banks covering Rheinmetall suggest their purchase. The average target price of analysts is about 2,031 euros in a twelve-month period, 19% above the current price.
Analysts are more cautious about Renk and Hensoldt. Only nine out of 15 analysts recommend the Renk stock market, while only five in 14 do it for Hensoldt. This is mainly due to the high valuations of both shares.