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Rheinmetall shares rise as UBS predicts increased defense spending post elections
Rheinmetall shares are rebounding in pre-market trading, rising by up to 4.5% to 934 euros, as UBS analyst Sven Weier anticipates increased defense spending from the new German government, setting a price target of 1,208 euros. Despite potential legislative hurdles from the AfD and Linke parties, Weier identifies several strategies for boosting the defense budget, including activating the emergency clause and budget adjustments. Investors should also monitor shares of Hensoldt and Renk.
Rheinmetall shares poised for growth amid anticipated military spending increase
Rheinmetall shares are poised for a rebound following the German parliamentary elections, with a rise of up to 4.5 percent noted. UBS analyst Sven Weier anticipates increased military spending from the new government, setting a price target of 1,208 euros, the highest in the market. Despite potential legislative hurdles from the AfD and Linke parties, opportunities for budget increases through emergency measures or tax adjustments may arise.
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